Japan Trade Surplus Narrows 35.9% YoY In June

Japan's trade surplus fell 35.9 percent to JPY 439.91 billion in June of 2017 from JPY 686.47 billion in the same month a year earlier and below market consensus of a surplus of JPY 484.7 billion. Exports rose 9.7 percent from a year earlier to JPY 6,607.55 billion while imports jumped 15.5 percent to JPY 6,167.65 billion.

In June, sales rose 9.7 percent year-on-year to JPY 6,607.55 billion. The figure came in slightly above market estimates of a 9.5 percent increase and marked the seventh straight month of gain in exports. Sales of transport equipment grew by 4.8 percent, supported by motor vehicles (5.0 percent) and parts of motor vehicles (13.1 percent). Also, outbound shipments of machinery went up 13.8 percent, boosted by power generating machine (11.1 percent) and semicon machinery (38.2 percent). Sales of manufactured goods increased by 7.9 percent, led by iron and steel products (19.0 percent). In addition, exports of electrical machinery rose 10.1 percent, mainly driven by semiconductors (11.3 percent) and IC (16.4 percent). Sales of chemicals went up 11.1 percent, boosted by organic chemicals (6.6 percent) and plastic materials (9.8 percent). Exports of others rose 14.2 percent, driven by scientific, optical instruments (20.7 percent). In contrast, outbound shipments of foodstuff declined by 2.1 percent.

Among major trading partners, exports rose to China (19.5 percent); the US (7.1 percent); the EU (9.6 percent), of which Germany (10.6 percent); South Korea (26.7 percent); and Australia (9.0 percent).

Imports jumped 15.5 percent to JPY 6,167.65 billion, beating consensus of a 14.6 percent rise. Purchases rose for all categories: mineral fuels (31.1 percent), of which petroleum (3.1 percent); electrical machinery (5.5 percent); chemicals (9.5 percent); machinery (22.1 percent); transport equipment (9.3 percent) and others (9.8 percent), of which scientific, optical instrument (9.3 percent); foodstuff (12.9 percent); manufactured goods (14.6 percent) and raw materials (24.1 percent). 

Among major trading partners, imports rose from China (5.2 percent); the US (19.3 percent); Taiwan (29.0 percent); the EU (11.6 percent), of which Germany (13.9 percent); South Korea (12.0 percent); and Australia (83.0 percent).

Ministry of Finance l Rida Husna | rida@tradingeconomics.com
7/20/2017 8:16:50 AM