The FINANCIAL — Japanese exports fell for the first time in more than a year in October, hit by weaker demand in China and other Asian economies, according to Nasdaq.
Government data released on November 19 showed that the world’s third-largest economy got off to a subdued start in the final quarter of the year, after contracting for a second-straight quarter in the three months to September.
Exports slid 2.1% from a year earlier to ¥ 6.544 trillion ($52.9 billion) in October, the first decline since August 2014, indicating that a sharp economic slowdown in China and sluggish demand elsewhere in Asia outweighed the effects of a weaker yen that has inflated the value of trade revenue in Japan’s currency.
Economists surveyed by The Wall Street Journal had expected a 1.9% fall in the value of exports. Exports rose a revised 0.5% in September.
Gross domestic product contracted 0.8% in the July-September period, after decreasing 0.7% the previous quarter, putting the economy in a recession according to some economists’ criteria.
Exports to China dropped 3.6%, the third straight month of decrease. Shipments of auto parts and electronic components both suffered double-digit declines. Exports to the wider Asia region, including China, also fell 3.6%, the sharpest drop in more than a year.
Export volumes also slid 4.6%, offering another worrying sign of weakness, falling for the fourth straight month, according to the Ministry of Finance.
Japan’s trade balance—the amount by which exports exceed imports—came to a ¥ 111.5 billion surplus in October, the ministry said. This was the first surplus in seven months, with a 13.4% drop in imports the main factor helping push the balance into the black. Economists polled by the Nikkei and The Wall Street Journal had forecast a ¥ 270 billion deficit.
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