Japan Trade Balance Swings to Surplus in August
Japan's trade balance swung to a JPY 113.64 billion surplus in August of 2017 from JPY 34.62 billion deficit in the same month a year earlier and above market consensus of a surplus of JPY 93.9 billion. Exports rose 18.1 percent from a year earlier to JPY 6,278 billion while imports increased by 15.2 percent to JPY 6,164.4 billion.
In August, exports rose 18.1 percent from the previous year to JPY 6,278 billion and above expectations of a 14.7 percent gain. It was the ninth straight month of increase in outbound shipments and the fastest since November 2013, as all categories lifted. Sales of transport equipment grew by 13.9 percent, supported by motor vehicles (14.5 percent), parts of motor vehicles (18.1 percent), and motorcycles, autocycles (30.9 percent). Also, outbound shipments of machinery went up 18.5 percent, mainly boosted by power generating machine (19.7 percent), computers and units (18.6 percent), and parts of computers (19 percent). Sales of manufactured goods increased by 11.7 percent, led by iron and steel products (13.8 percent). In addition, exports of electrical machinery rose 16.9 percent, mainly driven by semiconductors (19.1 percent) and IC (23.5 percent). Sales of chemicals went up 20 percent, boosted by organic chemicals (24.8 percent), medical products (17 percent), and plastic materials (15.7 percent). Exports of others rose 26.3 percent, driven by scientific, optical instruments (29.4 percent). In addition, outbound shipments of foodstuff rose 18.1 percent and those of raw materials gained 33.1 percent.
Among major trading partners, exports rose to China (19.9 percent); the US (21.8 percent); the EU (13.7 percent), of which Germany (13.3 percent); Hong Kong (25.8 percent), and South Korea (17.1 percent).
Imports increased by 15.2 percent from a year earlier to JPY 6,164.4 billion, and above market expectations of a 11.8 percent gain. Purchases rose for all categories: mineral fuels (24.2 percent), of which petroleum (14.3 percent); electrical machinery (10.7 percent); chemicals (6.3 percent); machinery (23.8 percent); others (6.9 percent), of which scientific, optical instrument (12.2 percent); foodstuff (17.6 percent); manufactured goods (15.9 percent), raw materials (25.5 percent), and tansport equipment (8 percent), boosted by motor vehicles (17,9 percent) and parts of motor vehicles (19.8 percent).
Among major trading partners, imports rose from China (11 percent); the US (5.7 percent); Taiwan (4.2 percent); South Korea (16.7 percent); the EU (12.3 percent), of which Germany (23.8 percent), and Australia (51.8 percent).
Ministry of Finance, Japan l Chusnul Ch Manan| chusnul@tradingeconomics.com
9/20/2017 2:05:09 AM