–Export Volumes Also Mark 1st Y/Y Gain in 12 Months
–Imports Mark 6th Straight Y/Y Fall on Easing Energy Prices
–Exports to China See 10th Straight Y/Y Drop on Declines in Semiconductors, Foodstuff
By Max Sato
(MaceNews) – Japanese export values posted their first year-over-year rise in three months to a record high in September, thanks to solid demand for automobiles from the U.S. and Europe amid improved supply chains, leading to the country’s first trade surplus in three months, data released Thursday by the Ministry of Finance showed.
Import values fell on the year for the sixth straight month after recording their first drop in 27 months in April as energy and commodities prices have generally eased from last year’s surge.
Shipments to China, one of the key export markets for Japanese goods, posted their 10th straight year-over-year decline in September, led by declines in semiconductors and foodstuff, although shipments of chip-making equipment and mineral fuels rebounded. The world’s second-largest economy has been struggling to recover from its pandemic slump.
The key points from the MOF’s Trade Statistics:
* Export values rose 4.3% on the year to a record high of ¥9.2 trillion in September after falling 0.8% in August and edging down 0.3% in July, which was the first drop in 29 months. Exports have slowed from double-digit percentage gains seen last year. The increase was larger than the median forecast of a 3.9% rise (forecasts ranged from 1.6% to 4.5% gains). It was led by higher shipments of automobiles, auto parts and drugs, offsetting a pullback in semiconductor-producing equipment and mineral fuels.
* Export volumes rose a slight 0.7% on the year for the first rise in 12 months after falling 5.3% in August.
* Import values slumped 16.3% on the year in September after falling a revised 17.7% in August and 13.6% in July and marking their first drop in 27 months with a 2.3% drop in April. It was larger than the median forecast of a 13.4% decline (forecasts ranged from 14.3% to 10.2% falls). The decrease was led by crude oil, liquefied natural gas and coal as the prices for energy remain below year-earlier levels.
* Import volumes dipped 2.6% on year in September for the 11th straight decrease after sliding 7.3% in August.
* The trade balance came to an unexpected surplus of ¥62.4 billion in September after a revised ¥937.8 billion deficit in August. It was stronger than the consensus forecast of a ¥388.7 billion deficit (forecasts ranged from ¥600.0 billion to ¥146.4 billion deficits) and compared with a record high deficit of ¥3.51 trillion hit in January and a large ¥2.1 trillion deficit seen a year earlier. The ¥39.2 billion surplus in June was the first positive figure in 23 months.
* Exports to China, one of the top export destinations for Japanese goods, fell 6.2% on the year in September for the 10th straight decline. It followed decreases of 11.0% in August and their first drop in seven months in December 2022 with a 6.2% drop. The decrease was led by a slip in shipments of semiconductors and other electronic parts after a rebound in the previous month, offsetting higher exports of semiconductor-producing equipment and mineral fuels. The recent trend is in stark contrast to the middle of last year, when shipments to China rose 12.8% to a record high ¥1.78 trillion in July 2022.
* Japanese exports to Asia as a whole slipped 4.3% in September for the ninth straight drop, following an 8.8% decrease in August and their first year-on-year drop in 23 months in January, down 4.0%. The decline was led by semiconductor-producing equipment, chips and mineral fuels.
* Exports to the U.S., which have exceeded those to China since October 2022, recorded their 24th straight year-on-year rise, up 13.0% in September, following a 5.1% increase in August and a 36.5% surge to a record high of ¥1.78 trillion in October 2022. The increase was led by automobiles, construction and mining equipment as well as engines, as largely seen in the previous month. Shipments of semiconductor-producing equipment continued to dop.
* Shipments to the European Union posted the 31st straight year-on-year increase in September, up 12.9%, following a 12.7% rise in August. The increase reflects strong demand for automobiles and auto parts as well as iron and steel.