Japan's trade shrinks in November, despite strong exports of vehicles and computer chips

Japan has reported its exports fell slightly in November from a year earlier while imports declined nearly 12%

Japan Trade (Copyright 2022 The Associated Press. All rights reserved)

Japan's exports fell slightly in November from a year earlier, the first decline in three months, while imports were down nearly 12%, the government reported Wednesday.

Tepid global demand has been a drag on Japan’s economy, which depends heavily on export manufacturing.

Recent weakness of the Japanese yen against the dollar has meanwhile undercut its purchasing power for imports, though costs for oil and gas have fallen with a decline in oil prices since September.

Preliminary customs data show that exports in November fell 0.2% to 8.8 trillion Japanese yen ($61 billion) while imports declined 11.9% to 9.6 trillion yen ($66 billion). That left a deficit of 776.9 trillion yen ($5.4 billion).

Exports to the rest of Asia were down 4%, while exports to the U.S. rose more than 5%. Shipments to China, Japan’s biggest single overseas market, fell more than 2%.

Japan's exports of vehicles were a strong point, rising 11% from a year earlier, while computer chip shipments climbed 14%.

The outlook for exports is a “mixed picture,” Gabriel Ng of Capital Economics said in a research note, with new export orders falling steadily since August.

“We think that that external demand will likely be sluggish next year, especially as investment spending in main trading partners slows,” Ng said.