Global| Jun 23 2004Japanese Exports and Imports Both Grow in May
Summary
Japanese trade flows are growing with some vigor. Exports rose a steep 7.3% in May to ¥5.24 billion, a record high outstripping by 7.2% the previous record of ¥4.89 billion, which was only just reached last December. Press reports [...]
Japanese trade flows are growing with some vigor. Exports rose a steep 7.3% in May to ¥5.24 billion, a record high outstripping by 7.2% the previous record of ¥4.89 billion, which was only just reached last December. Press reports accompanying this data release today highlighted this strong export gain and accompanying widening of the trade surplus to ¥1.28 billion. Indeed, this performance implies that world demand is strengthening.
Japanese imports have also been strong in recent months, and this development has received less attention. The monthly increase in May wasn't so large, "just" 1.5%, but imports having been gaining at a double-digit pace, gauged on a year-on-year basis. Their May total of ¥3.96 billion is the second highest ever, with the record barely higher at ¥3.98 billion in December 2000.
The current growth in imports is not in petroleum, which is in fact down from a year ago. Instead, raw materials, especially metals, and machinery, particularly parts and audio/video equipment are rising rapidly, albeit somewhat erratically. Thus, manufacturers look to be stocking up in anticipation of further production gains; possibly, also, consumer demand for televisions and similar items is picking up, even as those latter products are now frequently imported into Japan from elsewhere in Asia. These are both signs of broadening economic recovery in Japan and elsewhere.
| Billion Yen, except as noted | May 2004 | Apr 2004 | Mar 2004 | May 2003 | Monthly Average or December/December|||
|---|---|---|---|---|---|---|---|
| 2003 | 2002 | 2001 | |||||
| Trade Balance | 1.28 | 0.98 | 1.00 | 0.87 | 0.85 | 0.82 | 0.55 |
| Exports | 5.24 | 4.89 | 4.86 | 4.46 | 4.55 | 4.34 | 4.08 |
| Year/Year %Change | 9.8% | 10.8% | 13.2% | -- | 8.5% | 15.3% | -14.5% |
| Imports | 3.96 | 3.90 | 3.86 | 3.59 | 3.70 | 3.52 | 3.53 |
| Year/Year %Change | 4.9% | 6.6% | 12.3% | -- | 17.% | 14.3% | -13.4% |
Carol Stone, CBE
AuthorMore in Author Profile »Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo. At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm. During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.
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