Japan's exports increased for the first time in 5 months
Japan's exports increased for the first time in five months, supported by a weak yen. However, exports to the US continue to decline despite lower tariffs on Japanese cars. In September, exports increased by 4.2% over the same period last year. This rate is lower than market expectations of an increase of 4.6%. Exports decreased 0.1% in August Japan's exports to the US continued to decrease for the sixth consecutive month, down 13.3% over the same period last year. While automobile exports decreased by 24.2%, chip manufacturing equipment decreased by 45.7%. On the other hand, exports to China increased 5.8%, while strong demand for raw materials and automobiles supported the increase. Exports to the rest of Asia increased 9.2%. Imports increased 3.3% in September compared to the same month last year, higher than market expectations of a 0.6% increase. As a result of these developments, Japan had a trade deficit of 234.6 billion yen ($1.56 billion) in September. Analysts had expected a surplus of 22.2 billion yen. Norinchukin Research Institute chief economist Takeshi Minami said the export outlook remains weak and said, “Japanese exporters are not yet able to reflect the increase in costs. As this adjustment begins, export volumes may decline further.”
