RTTNews - Japan's unadjusted current account balance came in at 1.153 trillion yen in June, the Finance Ministry said on Monday, jumping 144.4 percent on year for the first increase in 16 months.

Analysts had been expecting a surplus of 655 billion yen following the 1.301 trillion yen surplus in May.

Seasonally adjusted, the current account surplus was 1.799 trillion yen versus expectations for a 1.35 trillion yen surplus after the 1.016 trillion yen surplus in the previous month.

The current account figure is the broadest measure of Japan's foreign trade performance, includes trade in goods, services, tourism and investments.
The balance of payments trade balance showed a surplus of 602.2 billion yen, topping forecasts for a 589.8 billion yen surplus after the 387.3 billion yen surplus a month earlier. Imports were down 43.8 percent on year, while exports fell 37 percent on year.

Also, the Cabinet Office said that core machinery orders in Japan surged 9.7 percent in June compared to the previous month, easily beating forecasts for a 2.6 percent monthly gain after the 3 percent decline in May.

On an annual basis, core machinery orders fell 29.7 percent, again beating expectations for a 34.4 percent contraction after the 38.3 percent fall in the previous month.

For the second quarter of 2009, core machinery orders were down 4.9 percent compared to the previous three months. That follows the 9.9 percent quarterly decline in Q1.

Japanese companies now forecast an 8.6 percent decline in core machinery orders for the third quarter.

In addition, the Bank of Japan said that bank lending in Japan was up 2.2 percent on year in July, marking the slowest growth in 11 months after gaining 2.5 percent in June.

Including trusts, bank lending was up 2.1 percent on year after the 2.4 percent increase in June. Seasonally adjusted, bank lending gained 2.8 percent on year after the 3.1 percent increase a month earlier.

The M2 money stock was up 2.7 percent after the 2.5 percent gain in June. M3 added 1.9 percent, up from the 1.7 percent expansion in the previous month. The broad measure of liquidity eased 0.1 percent - the same reading as the previous month.

For comments and feedback: contact editorial@rttnews.com