Japan’s May exports down 40.9 per cent

Japan's exports dropped 40.9 per cent in May, from a year earlier, falling for the eighth consecutive month, up from 39.1 per cent in April, indicating the slack demand for Japanese goods as global economies struggle to revive.

Japan's exports showed little sign of remaining firm in May after an improvement in the April figures compared to the severe decline of 46.5 per cent in March, increasing the uncertainty of a recovery amid a prolonged global recession. On a seasonally adjusted basis, exports fell 0.3 per cent in May from April on a value basis.

Among the sectors that were hammered are the transport equipment segment under which motor vehicles dropped by 56.5 per cent, and commercial vehicles by 59.3 per cent. Paper and paper manufacuturing dropped by 45.7 per cent, computers by 42.2 per cent, electrical machinery comprising of video recorder dropping 40.8 per cent and visual apparatus dropping 39.4 per cent, government data showed.

Exports to Japan's major markets - the United States and Europe fell 54.8 per cent and 45.4 per cent respectively, making it the 21st consecutive month of decline to the US, the finance ministry said.

Japan depends heavily on US consumer demand. Exports of iron and steel products to the US dropped sharply by 60.5 per cent followed by electrical machinery comprising of video recorder dropping 61.4 per cent, visual apparatus dropping 61.3 per cent, TV receiver 60.3 per cent and semi conductor IC falling 52.3 per cent.

The transport equipment segment nosedived as commercial vehicle equipment exports to the US fell by 73.4 per cent, motorcycles by 58.1 per cent and motor vehicles and cars by 53.7 per cent and 53.5 per cent respectively.

Exports to Europe fell 278.7 per cent in transport equipment for ship, followed by 80.8 per cent for equipment for bus and trucks, and 80.1 per cent fall in steel products.

Similarly exports to Russia declined 88.3 per cent, to Australia by 47.9 per cent, the Middle East by 47.4 per cent, China by 29.7 per cent and Asia by 35.5 per cent.

Imports from US fell 40.3 per cent, Asia dropped 36.3 per cent and from EU countries fell 28.8 per cent, according to the data.

Imports of crude oil fell by 63.1 per cent, nonferrous metals by 74.7 per cent and liquid natural gas by 51.4 per cent, according to the data.

Japan's total May exports stood at 4.02 trillion yen while total imports fell 42.4 per cent to 3.7 trillion yen.

The monthly trade balance stood at 299.8 billion yen, down 12.1 per cent from a year earlier, but the largest in a year and was better than 214.6 billion yen expected by analyst. A better than expected trade balance was on account of Japan's drop in purchase of goods from abroad, the data revealed