–Japan Posts 14th Straight Month of Trade Deficit on High Oil, Gas Import Costs
–Exports to US Hit Record High on Autos, Auto Parts, Construction Machines
–Imports from US, EU at Record Highs on Drugs, Energy
–Imports from Asia, China Also Reach Highs on Smartphones, Clothing
By Max Sato
(MaceNews) – Japanese exports values hit a record high in September as easing supply bottlenecks are supporting the auto industry and the prices for fuels and semiconductors remain high. But high energy bills and the weak yen also lifted imports to a fresh all-time high, leading to a 14th consecutive month of a trade deficit, data released Thursday by the Ministry of Finance showed.
The data also showed uncertainty over global and Japanese economic growth, with export volumes marking the first year-on-year rise in seven months, amid concern over aggressive credit tightening by the Federal Reserve and other major central banks aimed at reining in stubborn inflation. Import volumes marked the first dip in five months.
Shipments to China, the top export market, posted the fourth straight year-over-year gain after a two-month Covid lockdown of the key port city of Shanghai was lifted at the end of May.
The key points from the MOF’s Trade Statistics:
- Exports rose 28.9% to a fresh record high of Y8.82 trillion in September for the 19th straight year-on-year rise after a revised 22.0% gain in August, exceeding their previous high of Y8.76 trillion hit in July. The pace of growth was faster than the median forecast of a 27.1% gain. Export volumes posted the first year-over-year rise in seventh months, up 3.7% on the year, after falling 1.2% in August.
- The increase in September was led by a continued pickup in automobile shipments, thanks to easing global supply constraints, and solid demand and prices for mineral fuels and semiconductors, as largely seen in recent months.
- High export values reflect rising product and transportation costs. The recent decline in export volumes appears to stem from slowing global demand. The government sees the trend of exports “largely flat” after they had recovered from a Covid-triggered slump.
- Shipments of automobiles more than doubled, up 122.2% (up 49.2% in volumes) on the year in September following a 39.3% rise in August (up 8.8% in volumes). Auto exports to the U.S., the key market, surged 118.8% (up 72.7% in volumes) after rising 34.6% (up 13.4% in volumes) the previous month.
- On a seasonally adjusted basis, Japan’s exports to the world rose 3.2% in September from the previous month after rising 1.7% in August.
- Imports rose 45.9% on the year to Y10.91 trillion in September, marking a record high for the seventh consecutive month after surging 49.9% to Y10.88 trillion in August. It was the 20th straight increase and above the median forecast for a 44.5% rise. Import volumes posted their first drop in five months, down 1.8%, after rising 2.8% in August.
- The increase in import values was led by higher prices for crude oil, natural gas and coal as seen in recent months. The import of drugs grew on the year at a double-digit percentage pace in September after rebounding in August. The government still needs to buy more Covid vaccines to provide booster shots while Japan’s seventh wave of the pandemic has eased.
- The trade balance came to a deficit of Y2.094 trillion in September. It marked the 14th straight month of a shortfall after the record high deficit of a revised Y2.820 trillion the previous month and compared to a deficit of Y636.9 billion in September 2021. The gap was narrower than the consensus forecast of a Y2.140 trillion deficit.
- Exports to China, the top export destination for Japan, posted the fourth straight increase in September, up 17.1% from a year earlier, after rising 13.4% in August and climbing 12.8% to a record high Y1.78 trillion in July. The increase was led by demand for automobiles, chip-making equipment and semiconductors. Imports from China marked the fifth straight gain, rising 30.1% to a record high of Y2.31 trillion, after a 34.2% increase in August and a 34.6% jump in July to the previous high of Y2.21 trillion. It was led by strong demand for smartphones, clothing and TVs.
- Japanese exports to Asia as a whole marked the 19th straight year-on-year rise, up 20.6%, after rising 18.1% in August and growing 21.1% to a record high of Y5.10 trillion in July. The increase was led by shipments of automobiles, semiconductors and chip-making equipment. Imports from Asia also jumped 38.5% to another record high of Y4.88 trillion after surging 42.1% to the previous high of Y4.80 trillion in August, led by natural gas, smartphones and clothing.
- Exports to the U.S., another key market, recorded the 12th straight year-on-year rise, surging 45.2% to a record high of Y1.68 trillion in September, after rising 33.8% in August and gaining 14.1% to the previous high of Y1.58 trillion in July. The increase was led by automobiles, construction and mining equipment and auto parts. Imports from the U.S. reached a yet another high, on drugs and natural gas, rising 40.3% to Y1.070, just above the previous high of Y1.068 trillion.
- Shipments to the European Union posted the 19th straight year-on-year increase, up 33.2%, following a 16.7% rise the previous month, led by automobiles, iron and steel and chip-making equipment. Imports from the EU rose 20.4% to a record high, reflecting solid demand for automobiles, drugs and refined petroleum products.
Contact this reporter: max@macenews.com
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