Japan’s balance of trade swung unexpectedly to a surplus in June — the first since July 2021, as imports plunged 12.9% and export growth accelerated a tad.

The trade surplus came to 43 billion yen ($308 million), the finance ministry said Thursday. Analysts had forecast a 46.7 billion yen deficit. The value of exports rose 1.5%, led by shipments of cars and construction machinery. Imports were dragged down by a 36.2% drop in crude and a 37.5% decline in coal.

The surplus will come as a positive sign for Japanese businesses as they continue to recover from the impact of the Covid pandemic. Confidence among the nation’s firms improved across the board in the Bank of Japan’s latest quarterly Tankan report released earlier this month, supporting the central bank’s view that the nation’s economy is gradually recovering.

What Bloomberg Economics Says...

“Healing supply chains probably allowed automakers to build and ship more cars. The fall in imports likely reflects declining energy prices.”

— The Asia economist team

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The report highlighted the mixed state of demand around the world. Exports to the US and Europe rose 11.7% and 15%, respectively, while shipments to China fell 11%. The pace of China’s economic expansion trailed expectations in the second quarter due in part to a slowdown in consumer spending, data earlier this week showed.

The yen was 6.8% weaker on average in June compared with a year earlier, a factor that inflates the value of imports. But energy prices fell at an even faster clip, reducing the value of imported fuel.

(Updates with details on the yen. An earlier version of the story was corrected to show the right imports and regional breakdowns.)