Japan’s Exports Record Fastest Growth in Nine Months, Beat Forecasts

Tokyo: Japan’s exports grew at their fastest pace in nine months in November, rising 6.1% year on year, according to data released by the country’s finance ministry on Wednesday.

The increase sharply exceeded expectations of a 4.8% rise estimated by economists polled by Reuters and accelerated from 3.6% growth recorded in October.

Exports were supported by strong shipments to Western Europe, which rose 23.6%, and an 8.8% increase in exports to the United States, Japan’s second-largest trading partner. The November data marked the first rise in exports to the U.S. since March.

By contrast, shipments to mainland China fell 2.4%, while exports to Hong Kong rose 11.4% compared with a year earlier. Exports of food products to mainland China declined 5.9% by value.

Overall automobile exports dropped 4.1% by value, though vehicle shipments to the U.S. showed signs of recovery, increasing 1.5% year on year.

Imports into Japan rose 1.3% in November, undershooting market expectations of a 2.5% increase, pointing to continued softness in domestic demand.

The trade data follows revised figures showing Japan’s economy contracted 0.6% quarter on quarter in the third quarter, equivalent to an annualised decline of 2.3%.

Despite broader economic challenges, exports of electrical machinery increased 7.4%, while semiconductor-related exports surged 13% from a year earlier. Analysts say strong U.S. investment in technology and data centres is supporting demand for Japan’s specialised manufacturing equipment.

Business sentiment in Japan improved in the fourth quarter, particularly among small manufacturers, according to the Bank of Japan’s Tankan survey, offering cautious optimism despite trade and geopolitical pressures.