Japan’s Current Account Fell to ¥215.1B, Core Machinery Orders Dropped by 14.3% - 9.7.2012

The Japanese Ministry of Finance announced yesterday night its Balance of Payments. The Current Account shrank to ¥215.1 billion in May from ¥333.8 billion in April, while it was expected by economists to have a surplus of ¥493.1 billion. In other words the Current Account fell by 62.6 per cent from May 2011. The global demand has reduced and Japanese exports reduced by 11.3 per cent, however imports were also lower in May falling by 11.1 per cent, the global economy is weakening as China cut interest rates and European sovereign debt crisis is worsening. Additionally, the Japanese Core Machinery Orders fell in May by 14.8 per cent while in April increased by 5.7 per cent. At the same time the Bank of Japan is expected to keep its monetary policy unchanged at its two-day meeting that ends on Thursday.