By Max Sato
(MaceNews) – Japanese exports continued posting a sharp year-on-year rise in July, recovering from the pandemic-caused slump of 2020, led by demand for automobiles and steel as seen in recent months, data released Wednesday by the Ministry of Finance showed.
Japanese passenger cars, steel and semiconductor-producing equipment continued drawing strong demand while higher energy and commodities prices boosted imports. Purchases of COVID-19 vaccines from the U.S. and Europe also supported the pace of imports.
The key points from the MOF’s Trade Statistics:
- Exports jumped 37.0% in July from a year earlier for the fifth y/y rise in a row, with the pace of increase decelerating from +48.6% in June and +49.6% in May. The July figure came in weaker than the median economist forecast of a 39.0% rise. The increase was led by automobiles and auto parts as well as iron and steel, the same pattern as seen in recent months.
- On a seasonally adjusted basis, exports were flat (0.0%) in July from the previous month, indicating the pickup will be gradual. The Bank of Japan’s real export index rebounded a seasonally adjusted 0.5% on month in June, the first rise in two months (-0.2% in May, +2.5% in April). In April-June, the index gained 3.5% on quarter, the fourth consecutive rise after +1.8% in January-March. The BOJ will release its real trade indexes for July at 1400 JST (0500 GMT) Wednesday.
- Imports gained 28.5% y/y in July, the sixth straight rise after rising 32.7% the previous month. The pace of increase was slower than the median economist forecast of a 35.1% rise. Imports were led by crude oil, iron ore and non-ferrous metals, following sharp increases in energy and commodities prices earlier this year.
- The trade balance resulted in a surplus of Y441.0 billion in July, marking the second straight positive figure, after a surplus of Y384.0 billion the previous month. The gap was wider than the median economist forecast of a Y202.3 billion surplus.
- Exports to China, the top export destination for Japan, remained strong, up 18.9% from a year earlier in July for the 13th consecutive y/y rise, with the pace of increase decelerating from +27.7% in June. The increase was led by solid demand for plastics, semiconductor-producing equipment and electronic parts.
- Japanese exports to Asia as whole marked the fifth straight y/y rise, up 32.5% y/y in July vs. +37.1% in June.
- Exports to the U.S. rose 26.8% in July, the fifth y/y gain in a row after a 85.5% surge the previous month, partly in reaction to a 19.5% fall in July 2020. The increase was led by automobiles, auto parts and engines, as seen in recent months.
Contact this reporter: max@macenews.com.
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