By Kantaro Komiya

TOKYO, Reuters – Japan’s export growth likely slowed down in October. This follows seven months of double-digit growth due to dwindling auto shipments. A Reuters poll on Friday showed that.

These data are expected to show the risks facing an export-dependent economy, such as rising prices for raw materials and prolonged supply restrictions. They also highlight corporate profits being squeezed by a weakening yen.

According to Reuters polled analysts, export data for October will show a 9.9% increase in trade from a previous year.

“Conspicuous weakness…reflected a rapid decline in car shipments, due to production cuts,” stated Kenta Maruyama (NYSE:) Research and Consulting. She added that exports would recover in early 2022 if carmakers ease production constraints.

The poll indicated that October’s imports rose by 31.9% compared to a year ago, after having risen 38.6% the month before. This resulted in a third consecutive month of trade deficit, according to the poll.

At 8:50 AM on November 17, the finance ministry will release trade data (2350 GMT, Nov. 16,).

The poll indicated that Japan’s core consumer price indexes likely increased 0.1% in October compared to a year ago. This pace is the same as September.

It will contrast with wholesale inflation that reached 8.0% last October (a record high for the past 40 years) due to rising commodity prices. This is an indication of how companies struggle to pass more costs on to their customers.

At 8:30 am on Nov. 19, the consumer price data will be available (2330GMT, Nov.18).

Takeshi Minami (chief economist, Norinchukin Research Institute) stated that Japan is experiencing a “gush of pent up demand” unlike the United States and Europe.

Core machinery orders, which is a key indicator of capital expenditure, increased 1.8% in September compared to August’s 2.4% decline. Data is expected to be available at 8.50 AM on November 17 (2355 GMT, Nov 16).

($1 = 114.2500 yen)