TOKYO- Japan’s exports sped up in November, as supply constraints eased slightly for the country’s big automakers, although imports hit a record on soaring materials costs, which could hurt household consumption.
The trade data came days after the Bank of Japan’s quarterly tankan survey showed an improvement in service-sector sentiment, suggesting robust consumption will support the recovery, although the new Omicron variant and rising costs remain downside risks.
Exports climbed 20.5 percent in November from a year earlier, government data showed on Thursday, the ninth straight month of increase, slightly missing forecasts for a 21.2 percent gain but well up on a 9.4 percent rise in the previous month.
Shipments of cars – Japan’s No.1 export item – rose 4.1 percent from a year earlier, marking the first increase in three months, although auto exports to the United States and China decreased year-on-year.
“The jump in exports in November suggests that most supply chain constraints in the automobile sector had already eased last month,” said Tom Learmouth, Japan economist at Capital Economics.
“Exports will remain strong over the coming months as motor vehicle exports recover further and external demand for capital goods continues to rise.”
Other than cars, growing shipments of steel, semiconductor equipment and chips contributed the most to the increase, a government official said.
Shipments to China, Japan’s biggest trade partner, increased 16.0 percent year-on-year, the data showed.
Imports rose 43.8 percent year-on-year in November to 8.32 trillion yen ($72.87 billion), the largest yen amount since comparable data became available in January 1979 and jacked up by a 144.1 percent rise in fuels such as oil, LNG and coal. — Reuters
