Japan Trade Surplus Shrinks in August

Japan's trade surplus unexpectedly shrank by 37.5% in August from a year earlier to Y103.22 billion, the first year-on-year drop in 15 months, with the pace of export growth decelerating for the sixth month in a row, Ministry of Finance data released on September 27 showed.

August's surplus followed a downwardly revised surplus of Y801.99 billion in July (preliminary +Y804.20 billion), which was up 119.3% from a year before. In August 2009, Japan posted a trade surplus of Y165.22 billion.

Japan's merchandise exports increased and annualized 15.8 during August. The pace of export growth decelerated for the sixth month in a row after +23.5% in July, having peaked at +45.3% in February. As for imports the increased 17.9 in August from a year earlier, compared with the prior reading of 15.7, whereas the anticipations referred to 17.5.

In September, Japan’s government intervened in the currency market for the first time since 2004, to curb the Yen edging towards 15-years high against the dollar, which threatened earnings of Japanese exporters such as Sony Corp. and Honda Motor Co.

Japan Trade Surplus Shrinks in August

9/29/2010 4:14:49 PM