Japan’s export growth slows amid Chinese holiday impact

Japan's export growth slowed in February, impacted by weaker car shipments to the US and reduced demand from China due to Lunar New Year. Read more at straitstimes.com.

TOKYO – Japan’s exports grew at a slower pace, as car shipments to the US fell and as demand in China slumped due to the Lunar New Year holidays.

The value of overall exports rose 4.2 per cent in February from a year earlier, after a big jump in the previous month, the Finance Ministry reported on March 18. The result beat the median analyst forecast of a 1.9 per cent rise. 

Imports rose 10.2 per cent, a little below the consensus estimate, as the trade balance swung to a surplus of ¥57.3 billion (S$460 million) on an unadjusted basis.

Exports to China declined 10.9 per cent as the Lunar New Year holidays took place in February this year. Double-digit drops in semiconductor manufacturing equipment, plastics and scientific optical equipment drove that decline even as shipments of semiconductors and other electronic components continued to surge on AI-related demand.

Exports to the US fell 8 per cent, led by a 14.8 per cent retreat in car shipments by value. On a unit basis, exports of cars fell at a slower pace, indicating that Japanese manufacturers continue to protect market share in the US with price cuts as they contend with tariffs.

Exports to the EU advanced by 14 per cent, with strong results for cars and machinery used in the construction and mining industries.