Japan Revises Its Exports Expectations Down For The First Time In 3 Years
In its monthly report for August, Japanese government revised down its view on exports for the first since 2015. The decision was based on risks of US-China trade war. Consumer prices expectations worsened as well due to growing inflationary pressure. Indeed, according to the report, consumer prices started rising at a slower pace.
Overall, the economy was described as "recovering at a moderate pace". But, a recovery in exports appeared to be slow. Exports of cars to the U.S. reduced and shipments of smart phone parts to China softened.
A senior economist at Mizuho Securities, Norio Miyagawa told: "Demand for new cars in the United States has weakened, which is behind the recent slowdown in Japan's auto exports," adding: "However, Japan's auto exports could take a serious hit in the future if tariffs rise."