Japan logs trade surplus in July

August 17, 2017

TOKYO- Japan logged a customs-cleared trade surplus of 418.8 billion yen in July, staying in the black for the second straight month, Ministry of Finance data showed Thursday.

But the surplus fell 17 percent from the year before, as higher prices of natural resources pushed up imports.

The result came against a median forecast of 327.1 billion yen in surplus among 19 research institutes surveyed by Jiji Press.

In trade with the United States, Japan posted a surplus for the first time in two months, on the back of brisk auto exports. The surplus rose 9.1 percent to 647 billion yen, the largest amount since US President Donald Trump took office in January.

According to the ministry's preliminary report, Japan's overall exports rose 13.4 percent to 6,494.9 billion yen, growing for the eighth consecutive month. The rise mainly reflected an increase of automobile and auto parts shipments to the Unites States and cargo ship exports to the Marshall Islands.

Overall imports expanded a steeper 16.3 percent to 6,076.1 billion yen, the seventh straight month of increase, supported by imports of liquefied natural gas and coal, as well as Chinese personal computers.

The growth of yen-quoted exports and imports stemmed in part from a 9 percent year-on-year fall in the value of the Japanese currency against the dollar.

Exports to the United States rose 11.5 percent to 1,318.7 billion yen, led by robust demand for large vehicles with an engine displacement of more than 3,000 cc. Exports of chipmaking equipment and aircraft engines also grew.

Imports from the country increased 13.9 percent to 671.7 billion yen, chiefly due to expanded purchases of liquefied petroleum gas. In addition, imports of US shale gas, which began in January, increased sharply.

In trade with mainland China, Japan posted a deficit of 256.1 billion yen, compared with a year-before deficit of 267.6 billion yen, staying in the red for the fifth straight month. Exports rose 17.6 percent, while imports were up 13.1 percent.

By contrast, Japan logged a trade surplus with the European Union for the first time in three months. Jiji Press