Feb 17 (cnbc.com) - Japan’s exports in January grew less than expected as manufacturers faced pressure from slowing overseas demand for cars and struggled with global supply constraints.
The world’s third-largest economy ran its biggest trade deficit in a single month in eight years, as persistent rises in fuel and raw material costs swelled imports, the value of which outstripped shipments.
The growing trade deficit highlights the export-reliant economy’s exposure to soaring commodity and raw material costs, on which manufacturers rely for producing goods at home.
Exports rose 9.6% year-on-year in January, Ministry of Finance data showed on Thursday, below a median market forecast for a 16.5% increase in a Reuters poll. It followed 17.5% growth in the prior month.
By region, exports to China, Japan’s largest trading partner, shrank 5.4% in the 12 months to January, posting its first contraction in 19 months on weaker general machinery shipments to the country.