Japan's auto exports down 36.7 pct in October amid supply shortage

Japan's auto exports kept plunging in October, down 36.7 percent compared with the previous year amid a semiconductor and parts shortage triggering output reduction, government data revealed Wednesday.

The rate of decline slowed down from a drop of 40.3 percent in a month earlier, but logging the second consecutive month decline in car shipments on year.

Japan's overall merchandise exports increased by 9.4 percent, compared to the 13 percent growth in September, according to a preliminary report by the Finance Ministry.

Exports of goods totaled 7.18 trillion yen (62.5 billion U.S. dollars), unable to achieve a double-digit percentage growth for the first time in eight months, which may slow the pace of the world's third-largest economy to recover from the impact of the COVID-19 pandemic, the ministry said.

Japanese automakers have been forced to reduce production since around the summer, amid a global chip crunch and parts supply disruptions in Southeast Asia which saw a surge of COVID-19 infection cases.

Imports amounted to 7.25 trillion yen (63.2 billion dollars), a 26.7 percent rise and up for the ninth straight month, due to the high prices of crude oil from producers such as the United Arab Emirates, according to the report.

As a result, Japan's trade balance in October turned out as a deficit of 67.37 billion yen (586.8 million dollars), becoming negative compared with a surplus of 840.80 billion yen (7.3 billion dollars) the previous year to mark red ink for the third month in a row.

All figures were compiled on a customs-cleared basis.