Geographical distribution
By region, Japan’s exports to the United States jumped 23.9%, while exports to China increased 17.8%, and shipments to the European Union fell 10.1%.
A weak yen turns Japan’s trade balance into a deficit
Car exports rose by 13.6% as automakers, including Daihatsu Motor Co., increasingly resumed operations after temporarily halting production in the wake of the safety certification scandal. It is unclear whether this momentum will continue in the coming months, as the scandal has since spread. Japan recently halted deliveries and sales of six vehicles, including three manufactured by Toyota Motor Co., after a government investigation found that there were falsified or manipulated safety data.
Other products that were at the forefront included semiconductor manufacturing equipment and electronic components.
Stronger-than-expected shipments were also driven by the country’s weaker currency. The yen traded at an average of 155.48 per dollar in May, 14.9% weaker than a year ago, the ministry said.
Chinese demand leads Japan’s exports to grow for the fourth month
While the beleaguered currency has provided a tailwind for exporters, there is growing concern among importers about the return of cost-driven inflation. More than 60% of Japanese companies surveyed said a weak yen would hurt their profits, according to a report by Teikoku Data Bank in May.