Japan's Trade Balance Slips Back Into Red

Japan suffered a trade deficit of $3.56 billion in October, as exports fell amid a slowdown in the global economy and a stronger yen, according to the Japanese government.

In September, Japan posted a trade surplus of $3.85 billion, and many analysts had expected Japan to post a trade surplus again in October.

Japan’s overall exports fell for the first time in three months in October on a year-on-year basis, declining 3.7 percent to $71.60 billion. The export decline was led by electronic parts, including semiconductors, and ships, which tumbled 20.8 percent and 32.4 percent, respectively, in terms of value.

Japan’s overall imports rose for the 22nd straight in October on a year-on-year basis, surging 17.9 percent to $75.16 billion. The import growth was fueled by crude oil and liquefied natural gas, which soared 33.4 percent and 63.8 percent, respectively, in terms of value.

Japan’s exports to the United States fell for the first time in three months in October on a year-on-year basis, dropping 2.3 percent to $11.60 billion. Imports from the U.S. rose for the third consecutive month, increasing 9.7 percent to $6.54 billion.

As a result, Japan’s trade surplus with the U.S. shrank for two months in succession in October on a year-on-year basis, narrowing 14.5 percent to $5.06 billion. The U.S. is now Japan’s second-largest trading partner after China.

Contact Hisane Masaki at yiu45535@nifty.com.