MNI BRIEF: Japan Aug Exports Fall, Autos Rise
Japan’s exports posted their second straight year-on-year drop in August due to slowing exports of chip-making equipment, falling 0.8% following July's 0.3% drop, data released by the Ministry of Finance showed on Wednesday.
Automobile exports, however, rose 40.9% , accelerating from July's 28.2% y/y gain, indicating that demand is recovering as supply-side restrictions ease. The data printed largely in line with the Bank of Japan's forecasts, despite weakness in overseas economies having a mostly benign impact thanks to the waning effects of supply-side constrains.
Japan's imports also fell 17.8% y/y for the fifth straight drop following July's 13.6% fall, the data showed, while the trade deficit was JPY930.5 billion, the second straight deficit following July's JPY66.3 billion.
Exports to China, Japan's largest trading partner, fell 11.0% in July for the ninth straight drop following July's 13.4% fall, as that county's economy continues to slow. U.S. exports rose 5.1% in August for the 23rd straight rise following 13.5% in July, auto exports to the U.S. rose 51.0% vs. 34.1%.