MNI BRIEF: BOJ's July Real Export Index Rises 1.7% M/M

The Bank of Japan’s real export index, calculated using Ministry of Finance trade data, rose 1.7% m/m in July for a third monthly straight rise. The figures were calculated by MNI based on BOJ data and confirmed. The July index rose 3.1% when compared on a like for like basis with Q2's 3.2% q/q decline.

BOJ officials saw both exports and production rebounded, helped by an easing in supply-side restrictions. However, they will monitor the impact of planned power outages in China on Japanese manufacturers' factories. Exports of automobiles rose 13.7% in July, accelerating from +0.4% in June, showing the impact of the supply-side restriction on automobile makers is easing.

Japan's exports rose 19.0% y/y in July for the 17th straight rise following +19.3% in June, and imports rose 47.2% y/y for the 18th straight gain following +46.1% in June, data released on Wednesday by the Ministry of Finance showed. The overall trade deficit was JPY1.437 trillion, as higher resource prices saw a12th straight deficit.

The full July real export index data is due on Monday.