July 24, 2014
Summary
◆According to June 2014 trade statistics, exports in monetary terms were down -2.0% y/y, their second consecutive month of year-to-year decline. Meanwhile, figures fell below market consensus as well (+1.0% y/y). Declines were due mainly to export volume having fallen in y/y terms for the second consecutive month at -1.7%, with export prices down also by -0.3% y/y, the first decline in export prices since May 2011.
◆June import amount achieved y/y growth for the first time in two months at +8.4%. The main factor encouraging growth was import volume which won y/y growth for the first time in three months at +7.2%. Import amount in seasonally adjusted terms was up +5.0% in m/m terms, registering growth for the first time in three months. As a result, Japan’s trade balance was in the red by 822.2 bil yen, the first time in three months the trade deficit grew in year-to-year terms.
◆The export volume index on a seasonally adjusted basis (DIR) grew for the first time in two months at +1.1% m/m. By region, exports to the US and Asia were down just slightly, with the US at -0.1% m/m, Asian exports at -0.4% m/m. Meanwhile, the EU gained +0.9%, thereby providing the support needed for overall gains.
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