Japan's trade surplus plunges 32.9 percent

Associated Press

TOKYO — Japan's trade surplus in October plunged 32.9 percent from the same time last year, shrinking at a faster-than-expected pace as the a slowing global economy took in fewer Japanese goods, the government said today.

The country's merchandise trade surplus — the measure of all goods exported minus those imported — fell to 462.5 billion yen ($3.7 billion) in October from the same period last year, the Finance Ministry said.

Japan's traditionally enormous trade surplus has been shrinking rapidly as the worldwide slump in information technology-related products saps demand for such Japanese exports.

October's decline was the 16th straight on-year drop in Japan's trade surplus.

Economists surveyed by Dow Jones estimated on average the surplus would come to 646.3 billion yen ($5.3 billion), down 6.2 percent.

Japan's exports fell 9.0 percent to 4.07 trillion yen ($33 billion) in October from a year before, reflecting a decline in shipments abroad of electronics parts and office machinery.

Imports fell to 3.61 trillion yen ($29.3 billion), down 4.7 percent, because of a drop in imports of electronics parts.

The decline in the trade surplus may slow in coming months due to continued weakness in imports as cash-strapped Japanese buy fewer foreign goods.

Japan's politically sensitive trade surplus with the United States narrowed 4.3 percent for the second straight month of decline to 617.1 billion yen ($5.9 billion) in October from a year earlier, the Finance Ministry said.