Japan October exports are seen dropping again
In October, Japanese exports dipped for a 13 straight month, while core consumer prices descended for an eight month in a row because of a strong yen, as a Reuters survey showed on Friday, thus casting doubt on hopes for a sustainable economic revival.
Exports were supposed to have sunk 8.6% in the year to October. Meanwhile, imports might have sagged 16.3%, according to the survey of 21 economists.
It would result in a trade surplus of about 615.4 billion yen in October, the poll revealed, up from a revised 497.6 billion yen surplus last month.
Considering the recent volume of exports, they aren’t so bad, though a strong yen is weighing on the value of exports as well as exporters' profits.
An inventory adjustment overseas has progressed and it’s definitely favorable for business confidence. So if export data demonstrates a solid tone, it will probably back a view that confidence will catch up. Moreover, recent drops in the Japanese yen will help corporate revenues.