(1888PressRelease)
November 28, 2008 - London, Exports fell by 7.7 percent year-on year in October, pushing the trade balance into deficit for the second time in three months. Trade deficit climbed to ¥63.9 billion, or $668.5 million as imports rose to 7.4 percent in the month of October.
In the largest drop in seven years, consignments to Europe dropped 17.2 percent while export orders from the U.S. dropped 19 percent.
In the past months, as demand from developed economics dropped, trade with developing Asian counterparts had helped bolster Japan’s exports. However, data from the Japan’s Finance Ministry revealed that exports to Asia and China have also dropped considerably. Exports to Asia dropped by 4 percent in October from a year earlier, the first drop in six years. Shipments to China - Japan’s biggest trade partner- also dropped by 0.9 percent last month, the first decline in over three years.
Exports of automobiles and electronics — the economy’s mainstay are also being impacted by diminishing global demand. Automobile exports fell 15 percent while those of electronic products sank 10.6 percent.
As export of Japanese cars fall, some the Japan’s biggest auto-makers are announcing production cuts to match supply to waning demand. Isuzu Motors, the country’s largest maker of light-duty trucks has cut production targets for the coming months while relieving 1,400 temporary and part time workers. Hino, another Japanese auto giant has announced that it will stop production in its Tokyo plant for 5 days the next month.
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