Japan Posts Sharp Surge in Exports During April, But Core Orders Come in Weak - Forex News by FX Leaders
Japan Posts Sharp Surge in Exports During April, But Core Orders Come in Weak

Japan Posts Sharp Surge in Exports During April, But Core Orders Come in Weak

Posted Thursday, May 20, 2021 by
Aiswarya Gopan • 1 min read

Things are possibly looking up for the world’s third largest economy, with exports registering a sharp spike in April on the back of improving external demand. Data released by the Ministry of Finance reveals that Japanese exports rose by 38% YoY during the month of April, higher than last month’s rise of 16.1% and economists’ expectations for a 30.9% increase.

Meanwhile, imports also came in higher than forecast – rising by 12.8% YoY for the period against expectations for an 8.8% growth instead. The surge in exports also helped drive the trade balance higher for the economy, posting a surplus of 255.3 billion yen against the forecast for a 140 billion yen reading instead.

However, other data released by the Cabinet Office reveals significant uncertainties clouding the economic outlook for Japan, with core machinery orders posting a 3.7% rise MoM during March, against economists’ forecast for a 6.4% increase instead. While this is a highly volatile data, it offers insight into how companies plan to spend their capital in the coming months.

On an annual basis, core orders fell by 2% YoY in March, lower than the estimate for a 2.6% decline instead. However, the decline in this figure indicates a more cautious mood among businesses, which is likely to put significant strain on the economy in the coming months.

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