US demand surge helps Japan post trade surplus | WPN World People News

Buoyed by a huge auto and electronics exports to the US, Japan has posted its first trade surplus in five months in February, according to the data released Thursday.

The data showed that the trade surplus though small nearly $400 million, was the first positive sign since July. It was significant because economic analysts had forecast a $1.4 billion deficit for February.

In January, the trade deficit recorded was $18.1 billion because Japan was forced to increase energy imports, as most of its nuclear reactors remain shut after the Fukushima atomic plant disaster last year.

The surging demand for imported fossil fuels had imbalanced Japanese trade for five months.

According to the data, overseas shipments have fallen to 2.7 per cent in February from the year earlier. Generally forecasts were for a drop of 6.5 per cent.

Imports have risen to 9.2 per cent from the previous year, the data showed.

Auto exports to the US rose 26.9 per cent from a year earlier while sales of steel, construction and mining machinery have also expanded, according to the official data.

Taro Saito, a senior economist at Tokyo-based NLI Research Institute, told wire news service AFP that the data was "quite a surprise".

"It was not expected that the decrease in exports would shrink this much," he said, adding one of the largest contributing factors was "the US economy" which is picking up much "faster than expected".

Source: Central America News.Net