October export rise of Japan remained stable, which is a sign of probable continuation of the same trend this quarter due to a strong demand for the country’s vehicles and electronic devices.
Released figures by the Finance Ministry today demonstrate that foreign sales increased 14% in a year, driven by car exports to Australia and equipment for gadget production, as well as raw materials needed for plastics to China. It compares with a yearly upswing of 15.8% predicted by experts, after September’s growth of 14.1%.
The mentioned data was preceded by figures showing that the country’s economy grew at the annualised 1.4% in the July-September period, thanks to a steady foreign demand.
Exports will keep expanding in the fourth quarter, economists forecast, while China is expected to cope with the risk of a sharp deceleration by means of infrastructure investment, and the US outlook seems more optimistic in light of the progress on tax reduction.
In the short term, exports of electronic components for new smartphone models will likely expand Japan’s foreign sales, according to Nomura Securities’ Masaki Kuwahara.