Year-on-year, sales dropped by 7.4 percent to 6,025.46, JPY billion in June, following a 11.3 percent fall in May while markets expected a 11.6 percent decline. It was the 9th consecutive month of decline as sales to most of the country's main export partners fell. Those to China declined by 10.0 percent, followed by South Korea (-13.6 percent), Singapore (-5.9 percent), Hong Kong (-17.8 percent), Thailand (-8.7 percent), Indonesia (-20.4 percent) and India (-4.9 percent). Sales also fell to the US (-6.5 percent), the EU countries (-0.4 percent), Western Europe (-1.1 percent), the Middle East (-17.8 percent) and South Africa (-31.0 percent). In contrast, exports were higher by 9.9 percent to Russia.
By product, shipments of mineral fuels dropped the most by 25.1 percent year-on-year), followed by raw materials (-20.1 percent), manufactured goods (-14.5 percent), electrical machinery (-7.4 percent, contributed by semiconductors: -11.3 percent, visual apparatus: -20.3 percent, audio apparatus: -7.0 percent, parts of audio visual apparatus: -22.4 percent and electrical power machinery:-6.7 percent), chemicals (-10.4 percent, driven by organic chemicals: -24.6 percent and plastic materials:-8.6 percent) and others (-5.8 percent). Sales also declined for: machinery (-5.9 percent, mainly due to power generating machine: -6.7 percent, computers and units :-3.2 percent, parts of computer: -12.1 percent and metalworking machinery:-28.1 percent) and transport equipment (-3.0 percent). In contrast, outbound shipments rose 13.7 percent for foodstuff.
Imports decreased by 18.8 percent from a year earlier to 5,332.63 JPY billion, compared to a 13.8 percent fall in a month earlier. It was the 18th straight month of decline and market estimates of a 19.7 percent drop. Purchases fell from most of the country's trading partners, including China (-12.4 percent), Taiwan (-24.4 percent), South Korea (-19.3 percent), Thailand (-18.7 percent), Malaysia (-19.2 percent) and Indonesia (-22.4 percent). Imports also declined from the US (-17.2 percent), Australia (-32.4 percent), Russia (-36.4 percent), the EU countries (-6.6 percent), the Middle East (-34.7 percent) and South Africa (-33.6 percent). In contrast, imports rose from Italy (+2.8 percent) and Belgium (+4.0 percent).
Purchases fell for all categories: foodstuff (-12.7 percent), raw materials (-24.5 percent, mainly due to wood: -12.2 percent, ore of nonferrous: -28.5 percent and iron ore and concentrates: -36.6 percent), mineral fuels (-36.7 percent, largely due to petroleum: -31.2 percent, petroleum products: -52.5 percent, LNG: - 43.9 percent: LPG -29.1 percent and coal: -32.4 percent), chemicals (-8.9 percent), manufactured goods (-17.4 percent), machinery (-15.4 percent), electrical machinery (-10.6 percent), transport equipment (-14.7 percent) and others (-3.8 percent).
In May 2016, the country posted a 40.72 JPY billion trade deficit, the first gap since January.
From January to June 2016, Japan posted a 1,810 JPY billion trade surplus, the first surplus since the second half-year of 2010.