Wednesday, June 22, 2005

Japanese exports fall for fifth month

by Brian Turner

Data released Wednesday indicates that Japan’s volume of exports have fallen four out of the past five months.

Preliminary figures from the Japanese Ministry of Finance show export volumes down 2.5 percent in May overall and that the volume of Japanese exports to Asia were down 4.7 percent, while they were up slightly, by 1.9 percent, to the United States.

Some analysts think that the low export figures to Asia are at least in part due to increased manufacturing by Japanese companies on the Asian mainland.

The value of Japanese exports in May was up by 1.4 percent at ¥4,796 billion, but that was the smallest gain in almost two years.

The value of imports, on the other hand, rose 18.6 percent in May to ¥4,499 billion, reflecting higher oil prices as Japan imported crude oil worth ¥638 billion in May. As a result, Japan’s trade surplus dropped by 68 percent to ¥297 billion in May.

At least one economist saw the strong import data as indicating strong domestic demand, and that this was signaling more strength in the Japanese economy.

Other analysts, however, question whether Japan’s domestic market is strong enough to allow continuing growth of the economy in the face of declining exports.

 

 

 

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