Japan’s Export Recovery Stretches to 12th Month in November
Japan’s Export Recovery Stretches to 12th Month in November
(Bloomberg) -- Japan’s exports grew for a 12th straight month in November, topping economists’ expectations, as external demand continued to fuel the nation’s longest stretch of economic growth since the 1990s.
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Key Takeaways
A yearlong recovery in exports has kicked Japan into higher gear, fueling record profits and rising capital spending during the longest economic expansion since the mid-1990s. Confidence among the nation’s large manufacturers has reached the highest level in a decade, while sentiment is rising even among smaller companies. The wage growth needed to drive a self-sustaining recovery remains elusive, though, even as the labor shortage intensifies, prompting the government to plan to offer tax benefits to encourage higher pay.
Economists’ Views
- "We can expect exports will remain strong enough to lead Japan’s economy, with solid demand from U.S. and China," said Norio Miyagawa, a senior economist at Mizuho Securities Co., who cited global demand for semiconductors and IT-related goods.
- "Without any sign of weakening in exports, Japan’s economy will probably keep recovering gradually," Miyagawa said. "The BOJ must be gaining confidence in the economy with today’s export data."
- The November data confirm the strength of global demand after signs of softening in October, said Atsushi Takeda, an economist at Itochu Corp. in Tokyo. "The general trend hasn’t shifted a great deal from last month, but the positive aspects are clearer with this month’s data,” he said.
Other Details
- Japan’s adjusted trade balance showed a surplus of 364.1 billion yen (forecast 265 billion yen).
- Exports to China, Japan’s largest trading partner, rose 25.1 percent from a year earlier.
- Those to the U.S. rose 13 percent.
- Shipments to the EU rose 13.3 percent.
- Exports of semiconductor machinery rose almost 55 percent.
--With assistance from Toru Fujioka and Yuko Takeo
To contact the reporter on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net.
To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net, Henry Hoenig, James Mayger
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