Japan Oct Exports Seen Snapping Double-Digit Growth As Car Shipments Falter



Kantaro Komiya | Reuters

TOKYO (Reuters) – Japan’s exports growth likely slowed in October, snapping seven-months of double-digit expansion due to dwindling car shipments, a Reuters poll showed on Friday.

The data is expected to highlight risks the export-reliant economy faces as prolonged supply constraints, rising raw material prices and higher import costs from a weak yen squeeze corporate profits.

Trade data will likely show exports increased 9.9% in October from a year earlier, gaining for the eighth straight month but slowing from a 13.0% rise in September, according to analysts polled by Reuters.

“Conspicuous weakness in exports…reflected a rapid decrease in car shipments due to production cuts, forced by semiconductors and other parts’ shortage,” said Kenta Maruyama, economist at Mitsubishi UFJ Research and Consulting, adding exports will recover by early 2022 when carmakers’ production constraints ease.

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