Thursday, October 24, 2013
DJ: Japan Cuts View On Exports In October Due To Slowing Car Exports
TOKYO--The Japanese government downgraded its assessment of exports for the second straight month in October, citing slowing shipments of automobiles to the U.S. and Southeast Asia as well as chemical goods to China.
In its monthly economic report released Thursday, the government described Japan's exports as being "almost flat." Last month, the report said shipments were "picking up."
While the government kept its evaluation of the overall economy unchanged, citing an improvement in corporate profits that is being passed on to capital investments, a government official said the slowing exports do pose a risk to the world's third-largest economy.
The last time the report downgraded the view of exports for two consecutive months was September and October 2010.
The latest data show the volume of Japan's shipments fell 3.5% in September from the previous month, which the official called "a pretty sharp drop."
The slowdowns to the U.S. and China aren't seen as a major concern, but rather a natural easing from recent fast growth, the official said. However, the trend to the Association of Southeast Asian Nations, especially Indonesia, could be a headache, he added.
For now, the government remained optimistic about the outlook, saying the recent export trend is likely to be short-lived, and the economy should keep expanding.