Japan Trade Deficit Narrows in September


Japan reported a trade deficit of ¥114.48 billion in September of 2015, much lower than a ¥961.98 billion gap a year earlier but missing market consensus of a surplus, as exports grew less than expected while imports fell.

In September, exports increased by 0.6 percent year-on-year to ¥6417.36 billion, the slowest growth since August 2014 when sales contracted 1.3 percent and following a 3.1 percent rise in a month earlier. Sales to the US rose 10.4 percent, those to the Western Europe increased 5.2 percent and to Oceania 1.6 percent. In contrast, outbond shipments to Asia, representing more than half of the country's total sales, declined by 0.9 percent. It was the first drop in seven months with sales to China falling for a second straight month by 3.5 percent, South Korea (-7.5 percent), India (-0.6 percent), Thailand (-2.8 percent) and Malaysia (-5.2 percent). Exports also dropped to Middle South America (-9.8 percent), Russia (-39.1 percent), Middle East (-1.8 percent) and Africa (-17.3 percent).
 
By commodity, value of outbond shipments increased for: foodstuff (+27.4 percent), electrical machinery (+6.9 percent), transport equipment (+3.7 percent) and others (+5.9 percent). In contrast, sales declined for: raw materials (-9.7 percent), mineral fuels (-21.1 percent), chemicals (-4.3 percent), manufactured goods (-8.2 percent) and machinery (-1.9 percent).
 
Imports decreased by 11.1 percent year-on-year to ¥6531.83 billion, following a 3.1 percent drop in August. Inbound shipments fell for raw materials (-17.3 percent) and mineral fuels (-36.0 percent, with sales of petroleum down by 43.7 percent, petroleum products: -23.9 percent, LNG: -32.4 percent and LPG: -54.4 percent). Purchases also dropped for: manufactured goods (-5.2 percent), electrical machinery (-0.8 percent) and transport equipment (-4.9 percent).
 
In August 2015, Japan posted a ¥ 569.66 billion deficit.
 

Japan Trade Deficit Narrows in September


Ministry of Finance l Rida Husna | rida@tradingeconomics.com
10/21/2015 8:27:26 AM