Japan's export growth signals economic recovery to continue in fourth quarter

Posted by Daily Shipping Times on 22-11-2017        Tweet

TOKYO: Japan's export growth held steady in October, suggesting that brisk global demand for Japanese cars and electronics will likely carry its economic recovery into the current quarter.

Ministry of Finance (MOF) data showed that exports rose 14.0 percent year-on-year in October, led by shipments of cars to Australia and liquid-crystal device production equipment and raw materials for plastics to China.

That compares with a 15.8 percent annual gain expected by economists following a 14.1 percent increase in September.

In volume terms, Japan's exports rose 3.8 percent in October from a year ago, after a 4.8 percent annual gain in September.

The value of exports to the United States rose 7.1 percent in the year to October led by motors and construction and mining machinery, following an 11.1 percent gain in the previous month.

Japan's trade surplus with the United States rose an annual 11.3 percent in October to 644.7 billion yen ($5.75 billion), a source of concern given President Donald Trump's demand for bilateral trade talks to fix trade imbalances under his "America First" policy.

The recent data marked the fourth straight month of annual growth in Japan's trade surplus with the United States.

Shipments to China, Japan's largest trading partner, rose 26.0 percent year-on-year in October to 1.35 trillion yen, the highest value on record.