The nation's trade surplus in the first half of the year dropped 7.9 percent from a year earlier to 6.057 trillion yen as overall exports plunged, the Finance Ministry said Thursday.

It was the first decline in the surplus in merchandise trade since the second half of 1996.

The politically sensitive trade surplus with the U.S. rose 4.2 percent year-on-year to 3.2 trillion yen, an increase for the sixth consecutive half-year term. But contentious steel and iron exports nosedived 52.5 percent.

The global trade surplus in June alone fell 2.9 percent from the same month last year to 1.178 trillion yen, the third straight month of decrease on a customs-clearance basis.

A ministry official said the trade surplus is not on an upward trend, as the recent figures indicate. A series of economic stimulus measures is beginning to take effect to boost domestic demand, which can help raise imports, the official claimed.

Exports in the January-June period lost 8.9 percent year-on-year for the second consecutive half-year period, amounting to 23.03 trillion yen. Imports also fell 9.2 percent, marking the third straight period of decrease.

On a regional basis, exports to the U.S. dropped 6.8 percent to 7.169 trillion yen, the first decrease since the second half of 1995. Office equipment and metal processing machines as well as steel and iron all set a double-digit fall. But automobile exports advanced 6.6 percent.

Imports from the U.S. plunged 14.1 percent to 3.969 trillion yen, with falling imports of office equipment and electronics components such as semiconductors.

The trade surplus with the rest of Asia plunged 20 percent to 1.66 trillion yen, the third consecutive period of decline. Exports such as electronic parts and ships fell 7.3 percent to 8.251 trillion yen. Imports, including liquefied natural gas and crude oil, slipped 3.5 percent to 6.591 trillion yen.

With the 15-member European Union, the trade surplus dropped 8.5 percent to 1.865 trillion yen, the first decrease since the second half of 1996.

Exports fell for the first time since the first half of 1994 to 4.254 trillion yen, down 7.6 percent from a year earlier. Declining items include office equipment, cars and audio equipment.

Imports from the EU decreased 6.9 percent to 2.389 trillion yen. Alcohol and clothes fell, while meat more than doubled.

In June alone, Japan's global exports shrank 5.8 percent from a year earlier to 4.094 trillion yen, and imports fell 6.9 percent to 2.915 trillion yen.

The June trade surplus with the U.S. rose 18.2 percent to 655 billion yen, as imports -- including aircraft and electronics parts -- plunged much more steeply than exports.