Japan: Merchandise exports surge in January
Latest reading: In January, the trade balance was JPY -1.2 trillion, down from the prior month’s JPY +0.1 trillion but less wide than economists had expected. Over the last 12 months, the trade balance summed to JPY -1.1 trillion.
Yen-denominated exports were up 16.8% in year-on-year terms in January, up from the 5.1% rise in the prior month and the quickest since late 2022. January’s rise was above economists’ expectations and was the fifth consecutive increase after four months of shrinkage. Shipments to the U.S. fell for the 10th month running, but at the gentlest pace since April; moreover, exporters frontloaded shipments ahead of the Lunar New Year, pushing up overall shipments and distorting the year-on-year comparison—the festival takes place later this year than last.
Meanwhile, yen-denominated imports were down 2.5% yoy in January, coming on the back of a 5.2% increase in the previous month.