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Sliding Japan exports, manufacturing gloom heighten economic risks

Credit: Reuters Studio
Published on July 18, 2019 - Duration: 01:14s

Sliding Japan exports, manufacturing gloom heighten economic risks

Japan’s exports fell yet again in June, while manufacturers’ confidence crumbled to a three-year low this month as a Sino-U.S. tariff row, slowing China growth and rising trade protectionism heaped pressure on the world’s third-biggest economy.

Francis Maguire reports.

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Sliding Japan exports, manufacturing gloom heighten economic risks

Another month, another fall in Japanese exports.

Down 6.7% in June from a year earlier - the seventh straight month of declines.

Driven by slowing sales of tankers, China-bound car parts and steel pipes The weaker exports fuelling concerns about the impact of the Sino-U.S. trade war..

Manufacturers' business confidence hit a three-year low in July.

And analysts were equally gloomy about Japan Although its economy grew 2.2% in the first quarter They predict it will slow in the coming months as the trade war hurts exports.

And in a new Reuters poll, three-quarters of economists said the Bank of Japan's next move would be policy easing.

Governor Haruhiko Kuroda sounded more upbeat.

Seen here at the G7 meeting in France, he said he sees no immediate need to ramp up stimulus.

Kuroda said the central bank will debate policy this month based on a view the economy is sustaining a moderate recovery.

But he also said the BOJ is ready to top up monetary support if overseas risks - like protectionism - hurt the central bank's aim for a 2% inflation target.

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