TOKYO, March 18 ― Japan's exports slipped for a 15th straight month in February as US and China-bound shipments declined, suggesting a cooling of business activity in the world's third-largest economy due to the coronavirus outbreak.
Imports from China fell at their fastest pace since 1986 after the virus, which has killed more than 7,000 people worldwide, led to a widespread shutdown of production in the region's largest economy.
Ministry of Finance (MOF) data out today showed Japan's exports fell 1.0 per cent from a year earlier in February, dragged by US-bound shipments of cars and metal processing machinery to China.
It was the 15th straight month of contraction, marking the longest such run since a 23-month stretch to July 1987 when the height of the country's stock market and real estate bubble was not yet reached, Refinitiv data showed.
The fall was also smaller than a 4.3 per cent decline expected by economists, and followed a 2.6 per cent decrease in January.
The data offers the strongest evidence yet of the growing economic impact coronavirus crisis. Many companies complained about the closing of factories in China and declining trade with Asia's largest economy in a Reuters survey published today.
That followed a survey the previous day that showed Japanese business confidence slumped to decade lows in march as the spreading coronavirus outbreak is dealing a heavy blow to Japan's economy.
By region, Japan's exports to China fell 0.4 per cent year-on-year in February, dragged down by falling shipments of integrated circuit chip manufacturing parts and ground products for chemicals.
US-bound exports, a key destination for Japanese cars and electronics, dropped 2.6 per cent in February, posting a seventh straight month of declines due to falling exports of 3,000-cc cars and semiconductor production equipment.
Reflecting weak domestic demand, Japan's total imports shed 14.0 per cent, in line with the median estimate for a 14.4 per cent decrease, dragged down by the sharp drop in imports from China.
Imports from China slumped 47.1 per cent from the previous year, seeing their biggest drop since August 1986, ministry officials said, as the country went into lockdown due to the spreading coronavirus epidemic.
As a result, Japan's trade balance recorded a surplus of ¥1.110 trillion (RM45 billion), its largest since September 2007, versus the median estimate for a ¥917.2 billion surplus. ― Reuters
