Japan's July export growth disappoints as volumes decline again

Posted on August 26, 2024   |  

Japan's July exports grew less than expected, with ongoing declines in shipment volumes, casting doubt on the economic recovery.

Exports rose by 10.3% year-on-year in July, missing the 11.4% forecast, despite a strong Q2 rebound driven by increased consumption.

July’s export growth was the eighth month in a row, but shipment volumes fell 5.2%, continuing a six-month downward trend.

Exports to China increased by 7.2% due to high demand for chip-making equipment, while exports to the U.S. rose by 7.3%.

Imports surged by 16.6% in July, surpassing the 14.9% forecasted increase.

The trade balance showed a deficit of ¥621.8 billion ($4.28 billion), much larger than the predicted ¥330.7 billion deficit.

The Q2 economic rebound suggested the central bank might continue tightening monetary policy.

The weaker-than-expected export growth and persistent volume declines add uncertainty to Japan's economic outlook.