–Jan-June Exports Mark 1st Y/Y Rise in 5 Half-Year Periods
By Max Sato
(MaceNews) – Japanese exports continued posting a sharp year-on-year rise in June and posted the first y/y gain in five half-year periods in January-June, recovering from the pandemic-caused slump of 2020, led by demand for automobiles and steel, data released Wednesday by the Ministry of Finance showed.
June exports to the world also rose from May, indicating a solid contribution to Japan’s gross domestic product in the April-June quarter at a time when restrictions to fight the spread of coronavirus infections are hurting consumer spending on services.
The Bank of Japan’s real export index dipped a seasonally adjusted 0.2% on month in May after rising 2.5% in April, but the index for the April-May average gained 3.4% on the January-March quarter. The BOJ will release its real trade indexes for June at 1400 JST (0500 GMT) Wednesday.
Japanese passenger cars, steel and semiconductor-producing equipment continued drawing strong demand while higher energy and commodities prices boosted imports.
The key points from the MOF’s Trade Statistics:
* Exports jumped 48.6% in June from a year earlier for the fourth y/y rise in a row, with the pace of increase decelerating slightly from the 49.6% surge in May. The June figure came in stronger than the median economist forecast of a 46.2% rise. The increase was led by automobiles and auto parts as well as iron and steel, the same pattern as seen in May. On a seasonally adjusted basis, exports rose 2.4% in June from the previous month.
* Imports gained 32.7% y/y in June, the fifth straight rise after rising 27.9% the previous month. The pace of increase was faster than the median economist forecast of a 29.0% rise. Imports were led by crude oil, non-ferrous metals and iron ore, reflecting the recent general uptrend in energy and commodities prices.
* The trade balance resulted in a surplus of Y383.2 billion in June, marking the first positive figure in two months, after chalking up a deficit of Y189.4 billion the previous month. The surplus was narrower than the median economist forecast of a Y460.0 billion surplus.
* In the first six months of the year, Japanese exports rose 23.2% on year, posting the first increase in five half-year periods, backed by strong demand for automobiles, auto parts and chip-making machinery. Imports were up 12.2%, also the first rise in five half-year periods. The January-June trade surplus came to Y985.0 billion, the second consecutive positive figure after a Y2.8 trillion surplus in July-December 2020.
* Exports to China, the top export destination for Japan, remained strong, up 27.7% from a year earlier in June for the 12th consecutive y/y rise, with the pace of increase accelerating from +23.6% in May but decelerating from +33.8% in April. The increase was led by strong demand for semiconductor-producing equipment, raw materials and plastics.
* Japanese exports to Asia as whole marked the fourth straight y/y rise, up 37.1% on year in June after rising 32.5% in May.
* Exports to the U.S. soared 85.5% in June, the fourth y/y gain in a row, following +87.9% the previous month, largely in reaction to a 46.6% plunge in June 2020. Japanese shipments to the U.S. suffered in the April-June quarter last year, when global demand slumped during lockdowns in many parts of the world. The increase was led by automobiles, auto parts and engines, as seen in recent months. * Shipments to the European Union also posted the fourth consecutive y/y rise, up 51.1% on year after +69.9% in May, thanks to solid demand for auto parts, construction machinery and automobiles.