Japan exports up 14pc in September, but pace slows

Japan exports up 14pc in September, but pace slows
JAPAN's exports rose 14.4 per cent in September year on year, but the pace of growth is slowing because of strong yen and softening demand from other Asian countries, said Japanese Ministry of Finance, reported Xinhua.

Although the September trade value totalled JPY5.8 trillion (US$71.8 billion) and marked the 10th consecutive month of growth, the growth rate in September declined 1.1 percentage point from August's 15.5 per cent and 9.1 percentage point from July's 23.5 per cent.

For the first half of fiscal 2010 between April 1 and September 30, Japan's exports rose 25 per cent year on year to JPY34.10 trillion and imports 20.8 per cent to JPY30.68 trillion, the ministry said.

Also, Japan's trade surplus from April to September increased 83 per cent to JPY3.42 trillion yen.

Imports in the September were up 9.9 per cent to JYP5.05 trillion, recording an increase of nine months in a row. The trade surplus soared 54 per cent to JPY797.0 billion, the first increase in two months.

The government said that exports to China were slowing, up 10 per cent in September to JPY1.081 trillion compared to an 18.5 per cent increase in August to JPY1.048 trillion.

Exports to other Asian countries including China rose 14 per cent, amounting JPY3.2 trillion, slowing from the 18 per cent gain or JPY3.036 trillion in August.

"Export growth will slow further and keep depressing the economic expansion. It's highly likely the economy will contract in the fourth quarter," said Japanese conglomerate Itochu Corp senior economist Yoshimasa Maruyama.

Source: SchedNet