Japan’s Exports Beat Forecasts as Oil Imports Plunge

Japan’s exports rose 14.8% year on year in April, far ahead of market expectations, MarketScreener reported. It was the eighth consecutive month of growth, supported by strong global demand despite Middle East tensions and supply-chain disruption.

Exports to the US increased by 9.5%, while shipments to China climbed by more than 15%. Imports also grew, although crude oil import volumes plunged 64% year on year, the steepest decline since 1980. Japan has sought to offset the shortfall with higher supplies from the US and by drawing on strategic reserves.

The strong export performance helped Japan post a trade surplus of about $1.9bn, although analysts had expected a deficit. Economists warned, however, that the conflict involving the US, Israel and Iran could raise production costs and weaken global demand, especially in energy-intensive sectors.

Other economic indicators also point to pressure on the economy. Machinery orders fell sharply in March, while services activity stalled in May for the first time in more than a year.

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