Japanese seasonally adjusted trade surplus slips in May

Alexander Bueso Sharecast | 19 Jun, 2017 09:43 - Updated: 09:43 | | |

BoJ

Japanese exports and imports failed to rebound in May, suggesting that foreign demand acted as a drag on the broader economy during the second quarter, but some economists were nevertheless optimistic.

In non-seasonally adjusted terms, exports grew by 14.9% year-on-year (consensus: 16.0%) to reach 5.85trn yen while imports were up by 17.8% to 6.05trn yen, according to the Japanese Ministry of Finance.

The result was an 329.6% increase in the country's trade surplus versus the year-ago period to reach 203.4bn yen.

During the month of April the value of exports had grown 7.5% and that of imports by 15.2%.

Strength in exports was mainly the result of increased volumes, which accelerated from a 4.1% year-on-year pace in April to 7.5% for May, according to Marcel Thieliant at Capital Economics.

Import volumes were up by 5.4% in parallel, their best showing since January, he said, "[which] suggests that domestic demand is picking up".

Upon seasonal adjustment on the other hand, exports were flat versus April and imports just 0.3% ahead. Hence, the seasonally-adjusted trade surplus slipped from 158bn yen to 134bn yen.

"Today’s data indicate that trade volumes were little changed in May, which suggests that net exports turned into a drag on GDP growth in the second quarter.

"Nonetheless, "new export orders" in the manufacturing PMI remains consistent with double-digit y/y-gains in export volumes. We reiterate our forecast that net exports will contribute 0.5 percentage points to 2017 GDP growth."

More news

27 Jun US close: Weak consumer sentiment weighs on markets

Weaker-than-expected readings on consumer confidence weighed on Wall Street throughout Tuesday’s session.

27 Jun Directors dealings: Card Factory chief tops up stake

Card Factory's Karen Hubbard picked up some more shares in the company she leads.

27 Jun Europe close: Jump in single currency after Draghi speaks takes it toll

A more confident tone from European Central Bank chief Mario Draghi and a profit warning from a German auto parts maker combined to send stocks lower across the Continent.

27 Jun US open: Weak data weighs on shares, banks outperform

Weaker than expected readings on consumer confidence weighed on Wall Street early in the session even as investors eyed a speech by Federal Reserve chair Janet Yellen later in the day.

27 Jun FX round-up: GBP ahead on BoE buffer call and SNP's stance on indyref#2

Sterling enjoyed a minor rise on Tuesday on the back of Bank of England requiring lenders to beef up their cash buffer in case of bad debts.

27 Jun London close: Hike in banks' capital buffers hits shares

A stronger sterling weighed on the FTSE on Tuesday, as it emerged the Bank of England will force banks to further bolster their capital buffers to deal with bad debts .

27 Jun Ukraine struck by massive cyber attack, banks and government hit

A massive cyber attack has targeted much of Ukraine’s state infrastructure as IT systems in the country’s national bank and its largest airport shut down.

27 Jun Commodities: Crude futures rise on hopes of API data showing draw in US stores

Crude-oil futures are riding higher Tuesday as the market looks to industry data out later to show a draw in US stockpiles.

27 Jun Hardide receives Nadcap accreditation for its coatings

Advanced surface coating technology provider Hardide announced on Tuesday that Hardide Coatings had gained Nadcap accreditation for coatings.

27 Jun RedstoneConnect to install cabling at new Spurs stadium

Smart building and commercial spaces technology and services provider RedstoneConnect announced on Tuesday that it was awarded a contract to install an IT cabling infrastructure throughout Tottenham Hotspur's new 61,500 seat stadium.