Japan merchandise exports plunge 4.2% to USD4.3b

Blame the slowdown on the 14.6% decline in electronic products.

According to Maybank Kim Eng, Japan merchandise exports grew 4.2% YoY in June to USD4.3b, slower than the 19.7% spike in May. The decline in electronic products, the top export item, worsened to 14.6% (USD1.9b) from 0.7% the previous month while growth in non-electronic manufactures slowed.

Here's more from Maybank Kim Eng:

This was due mainly to weak demand from Japan, which with the United States, is one of the country’s top two export markets. In June, exports to Japan plunged 24.7% after surging 81.5% in May. Meanwhile, in Thailand, a smaller export market but still among the top 10, exports grew only 6.9% following a 221.9% jump in May.

We attribute the sudden changes to the rebound from the natural disasters suffered last year in the two countries. Going forward, we expect growth will normalize and slow down further in line with the weak global economy. To date 1H12 export growth of 8% is better than that in 1H11 of 4.4%.