Japan cuts export view for 1st time in 7 months in Oct report

Economy13 minutes ago (Oct 14, 2021 09:41PM ET)

(C) Reuters. FILE PHOTO: A ship is pictured on an almost empty port in the Dotonbori amusement district of Osaka, Japan, March 14, 2020. REUTERS/Edgard Garrido

By Kantaro Komiya

TOKYO (Reuters) – Japan slashed its view on exports in its October economic report for the first time in seven months as Asia-bound shipments of cars and electronic parts peaked out amid supply chain constraints and China’s economic slowdown.

Yet the government maintained its overall economic assessment, pointing to signs of recovery in private consumption, especially in service spending, as a COVID-19 state of emergency was lifted thanks to a sharp fall in nationwide infection numbers.

“The economy continues to pick up but the pace of recovery is slowing,” the government said in its monthly report released on Friday after approval by Prime Minister Fumio Kishida’s cabinet.

On the outlook, the latest report put more emphasis on risks from supply chain-related issues than the spread of COVID-19 at home and overseas, warning of the need to “pay close attention” to the former.

Previously, the government downgraded its view on production in September, when a rapid surge in coronavirus cases disrupted auto plants in Southeast Asia.

“The effect of supply chain (issues) is now observable in exports, that’s why it is downgraded this month,” a government official told reporters before the cabinet approved the report.

The official cited tepid shipments of cars, electronics and other IT-related goods, as well as worries about a slowdown in China’s economic recovery.

Authorities maintained their assessment of most key economic elements including business spending, corporate profits and employment. Public investment was downgraded based on falling construction orders.

The report came a day after Japan’s new leader Kishida dissolved the lower house parliament to set the stage for the general election on Oct. 31.

Kishida’s ruling party, which is expected to defend majority seats in the election, will likely compile a large stimulus package worth tens of trillions yen to firm up the nation’s economic recovery from the pandemic.

Japan cuts export view for 1st time in 7 months in Oct report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Similar Articles

Most Popular

U.S. Supreme Court takes up Texas abortion case, lets ban remain

World19 minutes ago (Oct 22, 2021 07:35PM ET) (C) Reuters. FILE PHOTO: A supporter of reproductive rights holds a sign outside the Texas State Capitol...

U.S. Supreme Court takes up Texas abortion case, lets ban remain

World19 minutes ago (Oct 22, 2021 07:35PM ET) (C) Reuters. FILE PHOTO: A supporter of reproductive rights holds a sign outside the Texas State Capitol...

U.S. Democrats narrow differences on Biden’s agenda, mull billionaire tax

World38 minutes ago (Oct 22, 2021 06:16PM ET) 2/2 (C) Reuters. FILE PHOTO: U.S. House Majority Leader Steny Hoyer (D-MD) leaves the House floor at the...

Subscribe here