The nation’s trade balance returned to surplus in August as exports rose 18 percent year on year boosted by brisk shipments of automobiles and electronic parts, the government said Wednesday.
The world’s third-largest economy logged a surplus of ¥113.6 billion ($1.0 billion), returning to the black after a deficit of ¥34.6 billion a year earlier, according to data from the finance ministry.
The figure was however much lower than market expectations of a ¥356.7 billion surplus.
The rise in exports was the ninth consecutive month, with semiconductor shipments helping to boost the figure.
Imports grew 15.2 percent for an eighth monthly rise, boosted mainly by higher bills for coal, liquefied natural gas and crude oil.
“In a word, the trade data is strong,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute. “Imports are strong, but exports were stronger, and this is definitely a positive reading.”
“The actual content of the data is better than the headline balance number,” Shinke said. “Autos and semiconductors are leading the export growth.”
The ministry said the yen was on average 7.3 percent cheaper against the U.S. dollar in August compared with the same month the year earlier, making Japan’s imports costlier.
Japan’s politically sensitive trade surplus with the United States soared 49.6 percent to ¥534.7 billion ($4.8 billion) on increased exports of cars and microchip-making equipment, the second consecutive monthly rise.
The two countries had battled for decades into the 1990s over trade flows, which had become less of a hot-button issue under recent presidential administrations.
But U.S. President Donald Trump has vowed to root out “unfair” trade practices around the world, targeting countries including Japan.
Japan logged its first trade deficit in two months with the European Union, while its deficit with China decreased by 30.4 percent.
Source:-Japantimes.co.jp
