–Imports Up Slightly for 1st Y/Y Rise in 11 Months on Clothing, Computers; Coal, LNG Imports Continue Falling on Softer Prices
–Exports to China Post 3rd Straight Rise after Year-Long Slump
–Exports to US Remain Robust; Those to EU Up for 3rd Month in A Row
By Max Sato
(MaceNews) –Japanese export values rose 7.8% on year in February for the third straight increase, led by continued strong demand for automobiles and auto parts from the U.S. and Europe as well as semiconductor-producing equipment and plastics from Asia, data released Thursday by the Ministry of Finance showed.
The pace of increase was faster than the consensus call of a 5.7% gain but was slower than the 11.9% rise in January due to the lunar new year holidays in some parts of Asia after rush pre-holiday shipments in January.
Import values posted the first year-over-year increase in 11 months, up just 0.5% (consensus was a 4.0% rise), after falling a revised 9.8% in January. The increase was led by purchases of clothing, computers and refined petroleum products. Imports of coal and liquefied natural gas continued to fall on soft energy prices. Those of semiconductors from China also declined.
The trade balance recorded a ¥379.4 billion deficit after showing a revised ¥1,760.3 billion (¥1.76 trillion) deficit in January and a ¥58.88 billion surplus in December. The deficit was narrower than the median forecast of ¥826.2 billion, a ¥928.9 billion deficit in February 2023 and a record shortfall of ¥3,506.43 billion (¥3.51 trillion) hit in January 2023.
Shipments to China, one of the key export markets for Japanese goods, posted their third straight increase after a year-long decline through November amid a gradual recovery in the world’s second-largest economy.
Japanese exports to the European Union also posted the third consecutive gain after showing their first year-over-year drop in 33 months in November while exports to the U.S. remained robust, up for the 29th straight month, after rising to a record high in December 2023.
Other details from the MOF’s Trade Statistics:
* Export volumes fell 1.5% on year in February after rising 2.3% in January for the first drop in three months while import volumes rose 1.5% for the first increase in 16 months after an 8.4% dip.
* Exports to China, one of the top export destinations for Japanese goods, rose 2.5% on year in February after surging 29.2% in January and rebounding 9.5% in December. The increase was led by shipments of semiconductor-producing equipment, plastics and automobiles, as seen in the previous month.
* Japanese exports to Asia as a whole also rose a modest 2.3% in February after rising 13.5% in January and marking the first rise in 12 months in December with a 3.0% gain. The increase was led by solid demand for semiconductor-producing equipment, plastics and semiconductors.
* Exports to the U.S., which have exceeded those to China since October 2022, recorded their 29th straight year-over-year rise, up 18.4% in February, after rising 15.6% in January and soaring 20.2% to a record high of ¥2.08 trillion in December. The increase was led by automobiles and auto parts as well as construction and mining equipment.
* Shipments to the European Union rose 14.6% in February for the third consecutive increase after rising 13.8% in January. The increase reflects solid demand for automobiles, auto parts and organic compounds, as seen in recent months.