In light of the developments in overseas economies, Japan’s exports and production had been increasing but are slightly lacking momentum recently (Chart 5).
The lack of momentum in exports is temporary due to the effects of the slowdown in overseas economies for the January-March quarter appearing with a time lag; as for production, it is due to inventory adjustments of compact cars (with engine sizes of 660cc or less) as well as of iron and steel, in addition to the slowing in exports.