Japan Trade Balance Surges Despite Export Decline
Japan’s trade balance surplus came in much higher than expected in July, increasing from the prior month despite expectations for a decrease. The total merchandise trade balance came in at ¥804.2B versus the ¥466.3B expectation and a revised ¥686.4B in June. The seasonally adjusted figures came in similarly, rising to ¥610.4B Yen in July from ¥514.5B in June, and above the ¥397.5B expectation. The culprit for the widening of the trade surplus was a larger month-over-month decline in imports than exports—imports fell 3.5%, while exports fell 1.4%. With the Yen surging to multi-year highs in recent sessions, the prospect for Japan’s export growth looks bleak in the near-term.
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