MNI BRIEF: Japan's Nov Exports Rise For 21st Consecutive Month

November exports data lent support to the Bank of Japan's view that exports are on an upward trend thanks to the easing of supply-side constraints, but officials are worried about the impact of slowing global growth in the first quarter of 2023.

Bank officials expect the slowing in the U.S. economy caused by rate hikes by the Federal Reserve to become clearer next year, slowing Japan’s export growth.

Japan's exports rose 20% y/y in November for the 21th straight rise following growth of 25.3% in October. Imports rose 30.3% y/y for the 22nd straight gain following a 53.5% increase in October, data released on Thursday by the Ministry of Finance showed.

Japan posted a trade deficit of JPY2.03 trillion due to high resource prices, posting the 16th straight deficit following a deficit of JPY2.17 trillion in October.

Exports of automobiles rose 38.3% y/y in November, slowing from an 81% increase in October, showing automobile makers have reduced production amid a semiconductor shortage.

Exports to China, Japan's largest trading partner, rose 3.5% in November for the sixth straight rise following a 7.7% increase in October. Exports of automobiles rose 11.3% in November, slowing from a gain of 71.8% in October.

Exports to the U.S. rose 32.5% in November for the 14th straight rise following a rise of 36.6% in October. Exports of automobiles to the U.S. rose 41.1% vs. an increase of 31.1% the prior month.