Japan’s Exports Fall for Fifth Month Amid Trade Tensions
Published May 21, 2019 08:03PM ET
Updated May 21, 2019 08:30PM ET
Japan’s Exports Fall for Fifth Month Amid Trade Tensions
(Bloomberg) -- Japanese exports fell for a fifth straight month in April, offering the latest sign that China’s slowdown and its trade conflict with the U.S. are continuing to weigh on Japan’s economy.
The value of shipments abroad declined 2.4% in April from a year earlier, according to the finance ministry. Economists had forecast a 1.6% drop, following a 2.4% slide the previous month. Separate data showed machinery orders, a leading indicator of capital spending, rose for a second month in March, gaining 3.8% from the previous month.
Key Insights
- The figures should offer insight into how trade will affect the economy in the current quarter, after an abrupt fall in imports in the first quarter skewed Japan’s gross domestic product figures to show unexpected economic growth despite export weakness.
- Economic data is currently under close scrutiny amid speculation that a tax hike scheduled for October might be postponed due to concerns over the strength of the economy.
- The outlook for exports is gloomy given an escalation in the U.S.-China trade war in May that may weigh more heavily on Japan’s shipments to the world’s second-largest economy.
- The figures come ahead of a visit by U.S. President Donald Trump to Japan starting this weekend. Trade talks are likely to be on the agenda when he meets Prime Minister Shinzo Abe with any mention of agriculture, currencies or car tariffs to generate high interest.
What Bloomberg’s Economist Says
“The U.S.-China trade war is hardly good for an exporter like Japan. But, taking a ‘glass half full’ view, it’s not all bad. As we’ve noted, there are some opportunities for nimble Japanese businesses.”
Yuki Masujima, economist Click here to read more
Get more
- Imports rose 6.4% in April, indicating a drag on the economy at the start of the second quarter.
- The trade balance was a surplus of 60.4 billion yen in April, versus a median forecast for a 232.7 billion yen surplus.
- Exports to China decreased 6.3% in April, while shipments to the U.S. climbed 9.6% and sales to Europe retreated 2.6%.
Get The News You Want
Written By: Bloomberg
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.