Japan’s Trade Surplus Takes Sudden Upturn

Japan’s trade surplus rose in July for the first time in 15 months, helped by a hefty rise in semiconductor exports, the government said today.

The sudden upturn in the surplus, to $7.18 billion from $6.94 billion in July, 1987, caught many economists off guard. “We were surprised,” one said. “We had expected the overall trade figure to be down at least a billion dollars.”

Exports of semiconductors and other electronics parts rose 51.3% from a year earlier, reflecting strong overseas demand for microchips, which are now in extremely short supply.

Although July’s surplus and exports were up, Japan’s trade focus in the month was not on the United States but on Europe and Southeast Asia, economists said.

The sensitive surplus with the United States narrowed to $4.49 billion in July from $4.79 billion a year earlier.

Exports to the United States grew only 4%, mainly because of sluggish shipments of cars due to inventory adjustments by American dealers.