–Imports Up on Higher Demand for Crude Oil, Products, Computers; Chips Down
–Exports to China Post 6th Straight Y/Y Rise, Picking Up from Last Year’s Slump
–Exports to US Remain Robust; Those to EU Mark 2nd Straight Y/Y Slip
By Max Sato
(MaceNews) –Japanese export values rose 13.5% on year in May for the sixth straight increase, led by solid global demand for automobiles and Asian purchases of semiconductors, while export volumes were down for the fourth month in a row, data released Wednesday by the Ministry of Finance showed.
Import values rose 9.5% (consensus was an 11.4% rise) after rebounding 8.3% in April and falling 5.1% in March. The increase was led by continued solid demand for computers as well as crude oil and refined petroleum products whose import costs have been pushed up by the protracted weakness of the yen.
The trade balance recorded a ¥1,221.3 billion deficit (versus the median forecast of a ¥1,298.5 billion deficit) after showing a revised ¥465.6 billion deficit in April and a ¥382.4 billion surplus in March. It was narrower than a ¥1,382.3 billion (¥1.38 trillion) deficit in May 2023 and a record shortfall of ¥3,506.43 billion (¥3.51 trillion) hit in January 2023.
Shipments to China, a key export market for Japanese goods, posted their sixth straight increase after a year-long decline through November last year amid a gradual recovery in the world’s second-largest economy. Japanese exports to the European Union fell on year for the second straight month, hit by lower demand for automobiles and steel. Exports to the U.S. remain robust, up for the 32nd straight month on autos, after hitting a record high amount in December 2023.
Japan’s economy marked the first slump in two quarters in January-March, down 1.8% annualized, after it narrowly averted a second straight contraction in the final quarter of 2023. Looking ahead, the economy in April-June is expected to show modest growth of about 2% annualized as auto production resumed in March but more revelations of false safety test records in June, this time at Toyota Motor itself, instead of its subsidiaries, are clouding the growth outlook for coming months.
Other details from the MOF’s Trade Statistics:
* Exports to China, one of the top export destinations for Japanese goods, rose 17.8% on year in May for the sixth straight month after rising 9.6% in April. The increase was led by shipments of semiconductor-producing equipment, non-ferrous metals and plastics, largely as seen in recent months. The prices for copper among other non-ferrous metals have been rising, reflecting strong demand from China.
* Japanese exports to Asia as a whole also rose for the sixth consecutive month, up 13.6%, after rising 9.7% in April. The increase was led by solid demand for semiconductor-producing equipment, semiconductors and plastics.
* Exports to the U.S., which have exceeded those to China since October 2022, recorded their 32nd straight year-over-year rise, up 23.9% in May, after rising 8.8% in April and soaring 20.2% to a record high of ¥2.08 trillion in December 2023. The increase was led by automobiles and auto parts as well as drugs.
* Shipments to the European Union slumped 10.1% after falling 2.0% in April for first drop in five months and rising 3.0% in March. It was due to lower demand for automobiles, iron and steel as well as construction and mining equipment.
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