TOKYO: Japan’s exports rose for the first time in five months in September due to a boost from a weak yen, although US shipments continued to fall despite lower US tariffs on Japanese autos that took effect in the month.
The uptick in exports adds to a string of recent data, including the Bank of Japan’s tankan business survey, that support a growing view within the central bank that the overall economy is weathering the impact of earlier tariff hikes.
But the outlook for exports remains dim, as US-bound exports will continue to struggle and the yen’s depreciation may be corrected, said Takeshi Minami, chief economist at Norinchukin Research Institute.
“The tariff impact has not fully materialised yet as Japanese exporters haven’t been able to pass on higher costs. If that adjustment starts to happen, it could further drag down export volumes,” he said.
Total exports by value rose 4.2 per cent year-on-year in September, data showed, less than a median market forecast for a 4.6 per cent increase and following a 0.1 per cent drop in August, the data on Wednesday (Oct 22) showed.
Exports to the United States fell 13.3 per cent in September from a year earlier, dropping for the sixth consecutive month. Automobiles plunged 24.2 per cent and chipmaking equipment slumped 45.7 per cent.
On the other hand, exports to China were up 5.8 per cent, helped by brisk demand for automobiles and materials. Those to the rest of Asia rose 9.2 per cent.
Imports grew 3.3 per cent in September from a year earlier, compared with market forecasts for a 0.6 per cent increase.
As a result, Japan ran a trade deficit of 234.6 billion yen (US$1.56 billion) in September, compared with the forecast for a surplus of 22.2 billion yen.