May trade deficit 2.385 trln yen, largest since Jan 2014
Imports gain more than expected yy
May exports rise less than expected yy
TOKYO, June 16 Reuters Japan ran its biggest singlemonth trade deficit in more than eight years in May as high commodity prices and declines in the yen swelled imports, clouding the country39;s economic outlook.
The growing trade deficit underscores the headwinds the world39;s thirdlargest economy faces from a slide in the yen and surging costs of fuel and raw materials, on which domestic manufacturers rely for production.
Imports soared 48.9 in the year to May, Ministry of Finance data showed on Thursday, above a median market forecast for a 43.6 gain in a Reuters poll.
That outpaced a 15.8 yearonyear rise in exports in the same month, resulting in a 2.385 trillion yen 17.80 billion trade deficit, the largest shortfall in a single month since January 2014.
The weak yen is a major factor behind the rise in imports, said Harumi Taguchi, principal economist at SP Global Market Intelligence.
But there39;ll be a lag before it benefits exports, she said, adding that U.S. and Chinabound shipments faced parts supply constraints and China39;s strict coronavirus lockdowns.
May39;s deficit, which was the second largest in a single month on record, marked the 10th straight month of yearonyear shortfalls and was bigger than the 2.023 trillion yen gap expected in a Reuters poll.
By region, exports to China, Japan39;s largest trading partner,…