Japan's May trade surplus down 7.6 percent

TOKYO, June 25 (UPI) -- Japan's trade surplus in May fell to about $3.4 billion, down 7.6 percent from May of last year, due to higher imports, the Finance Ministry said Wednesday.

The ministry said the third straight month of decline was blamed on imports led by soaring energy prices that outpaced growth in exports, Kyodo reported.

Japan's exports to the European Union, which had remained strong, eased in May compared to the same month of last year, because of lesser demand for Japanese vehicles, the news agency said, noting it was the first such drop in 31 months.

Trade surplus with the United States fell 11 percent, the ninth straight monthly decline.

Total Japanese exports in May rose 3.7 percent to $63.19 billion from year-ago levels, the 54th straight monthly gain. But imports in May rose 4.4 percent to $59.79 billion, up for the eighth straight month, for a monthly surplus of $3.4 billion.

Tatsushi Shikano, senior economist at Mitsubishi UFJ Securities Co., told Kyodo lower exports to EU indicate the slowdown in the United States is having a negative impact in other areas.