TOKYO, June 20 (UPI) -- Japan's May exports, hit by the earthquake and tsunami, fell 10.3 percent year-on-year, leaving a trade deficit of $10.65 billion, the government said Monday.
The May deficit, blamed on the March 11 disaster, was the second highest on record, but the government said the May decline in exports was slower than April's 12.4 percent year-on-year.
May exports totaled $59.4 billion while imports jumped $70.05 billion. It was the 17th straight month of increase in imports due largely to higher crude oil and commodity prices, Kyodo News reported.
The May numbers also resulted from higher fuel oil imports to make up for the loss in power supply from the Fukushima Daiichi nuclear plant, crippled by the March 11 earthquake and tsunami.
The May figures may indicate Japan's economy continues to be weak, but The Wall Street Journal reported improvement in industrial output and other signs raised analysts' expectations that the economy will grow from the July-September quarter.
UBS Securities Japan economist Takuji Aida said supply-chain problems resulting from the March 11 disaster are easing faster than expected, which should help exports recover from this month.
"The export falls have already bottomed, and that means the trade deficit also likely won't get any worse," he said.
