–Pre-Lunar Holiday Rush Shipments Also Supported Higher Export Growth
—Japanese Carmakers Plan To Trim Output Amid Semiconductor Shortages
By Max Sato
(MaceNews) – Japanese exports posted the second straight year-on-year increase in January, reflecting the recent recovery trend in global demand for semiconductors, but the faster pace of increase from December was also due to rush shipments to Asia before the Lunar New Year holidays in February, data released Thursday by the Ministry of Finance showed.
Shipments of automobiles, which had led overall exports, have showed. Hit by semiconductor shortages, Japanese carmakers have announced they would lower production.
The Japanese government will release its monthly economic report on Friday, in which it is expected to maintain its overall assessment that the domestic economy is “showing signs of a pickup.” Last month, it upgraded its views on China and Taiwan for the first time in three months while noting that weakness lingered in Germany and Britain.
The key points from the MOF’s Trade Statistics:
* Exports recorded a fairly high growth of 6.4% on year in January, largely in line with the median economist forecast of a 6.6% increase. It was the second straight y/y gain after rising 2.0% in December, which was the first rise in 25 months. The increase was led by higher shipments of semiconductor-producing equipment, plastics and non-ferrous metals, as seen the previous month. Exports of automobiles, mineral fuels and ships declined.
* Imports dipped 9.5% y/y for the 21st consecutive decrease in January after slipping 11.6% in December, coming in weaker than the median economist forecast of -6%. The decrease was due to lower prices for crude oil and refined petroleum products, compared to year-earlier levels, as well as slower purchases of clothing, while imports of telecom equipment (smartphones) rose.
* The trade balance came to a deficit of Y323.9 billion in January, posting the first shortfall in seven months, after a surplus of Y749.6 billion the previous month. The gap was narrower than the median economist forecast of a Y600 billion deficit.
* The MOF said exports rose a seasonally adjusted 4.4% on month in January and imports gained 6.9% m/m, resulting in a trade deficit of Y392.8 billion.
* Exports to China surged 37.5% from a year earlier in January for the seventh consecutive y/y rise, following +10.2% in December. The increase was led by strong demand for semiconductor-making machines, plastics and non-ferrous metals. The pace of y/y increase was sharply higher in January, partly because there were rush shipments before the week-long Lunar New Year holidays in China starting on Feb. 11. Last year, the New Year holidays were from Jan. 24 to Feb. 2.
* Japanese exports to Asia as whole marked the second straight y/y gain, up 19.4% on year after +6.1% in December, thanks to strong demand for semiconductor-making machines, plastics and non-ferrous metals, as seen the previous month.
* Exports to the U.S. posted the third consecutive y/y drop, down 4.8% last month, after dipping 0.7% the previous month. Shipments of aircraft, engines and auto parts declined.
* Demand from Europe remained sluggish. Exports to the EU fell 1.6% for the 18th consecutive y/y decrease after falling at the same pace in December. The decrease was led by slower shipments of automobiles, ships and motorcycles.
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Contact this reporter: max@macenews.com
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