As reported by Reuters, Japan’s exports numbers declined for the first time in almost two years, with the focus of the drop coming from shipments to the US and China.
Key quotes
“The data comes days after a Reuters poll showed a third of Japanese companies – not just exporters – have been affected by the trade conflict between the world’s two biggest economies, and more than half worried about its fallout on their business.
“Assuming the U.S.-China trade frictions have widespread effects on global trade, Japan’s exports will struggle to grow.” Minami said declines in shipments to the United States and China – the two key export destinations for Japan – are a source of concern as each of them accounts for about 20 percent of Japanese exports, respectively.
Ministry of Finance (MOF) data out on Thursday showed Japanese exports fell 1.2 percent in September from a year earlier, against a 1.9 percent increase expected by economists in a Reuters poll, and followed a 6.6 percent gain in August. It was the first decline since November 2016.
In volume terms, exports fell 4.8 percent in the year to September, the first drop in seven months.
Japan’s exports to the United States declined 0.2 percent in the year to September, dragged down by falling shipments of construction and mining machinery, auto parts and medicines.
U.S.-bound auto exports amounted to some 143,000 cars, down 7.0 percent year-on-year in a snapback from the previous year’s brisk shipments, a sign that car sales have leveled off.”
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