Japanese Overseas Subsidiaries Increase Sales for 6th Quarter in a Row

Total sales of Japanese overseas subsidiaries have improved 8.6 percent from the previous year for July to September 2017, according to a recent survey published by the Ministry of Economy, Trade and Industry (METI). This marks the sixth consecutive quarter of increasing sales.

Sales by Region

Sales in Asia, the region with the highest ratio of overseas subsidiaries at 50.7 percent, showed an increase of 12.2 percent over the previous year, growing for six consecutive quarters. In particular, sales of transportation equipment rose.

Sales in Europe improved by 9.8 percent from the previous year, an increase for six consecutive quarters,  while those in North America decreased by 1.5 percent from the previous year – the first decrease in 17 consecutive quarters. Europe accounts for 12.0 percent of Japanese subsidiaries, North America for 28.7 percent.

Capital Investment

The total amount of capital investment by overseas subsidiaries declined by 3.0 percent from the previous year.

By region, in Asia capital investment declined by 7.1 percent from the previous year, its 19th consecutive quarterly decrease. Meanwhile, China showed the first increase in eleven consecutive quarters.

Capital investment in North America increased by 3.0 percent from the previous year, the first increase in three consecutive quarters, while that in Europe improved 16.3% compared to the previous year – the first increase in three consecutive quarters.

Number of Employees of Japanese Overseas Subsidiaries

The total number of employees in overseas subsidiaries increased by 1.4 percent from the previous year, an increase for four consecutive quarters.

In Asia, employee numbers were up 0.5 percent over the previous year, which means four consecutive quarters of growth. In particular, numbers of employees in companies related to transportation equipment rose.

Meanwhile, the number of employees in North America was up 2.8 percent from the previous year, marking 25 consecutive quarters of increase.  Employee numbers also went up in Europe, where an increase by 4.2 percent from the previous year meant 17 consecutive quarters of increase.