MNI BRIEF: Japan Exports Rise Slows, Autos Decline
MNI (TOKYO) - Japan’s exports rose 5.6% y/y in August for the ninth straight rise but slowed from July's 10.2% gain as automobile shipments fell 9.9% following the prior month's 4.4% growth, data released by the Ministry of Finance showed on Wednesday.
However, semiconductor manufacturing equipment exports rose 55.2% in August, up from July's 27.8%. The print was within the Bank of Japan’s latest assessment that exports have been more or less flat.
Imports rose 2.3% y/y in August for their fifth straight increase, but also slowed from July's 16.6% rise.
Japan posted its second consecutive trade deficit at JPY695.3 billion in August following July's JPY628.7 billion.
Exports to China, Japan's largest trading partner, rose 5.2% in August for the ninth straight rise following 7.2% in July.
Shipments to the U.S. fell 0.7% for the first drop in 35 months following 7.3% in July, driven by the slower American economy. The Federal Reserve is set to lower its policy interest rate later today to support the economy and labour markets, a key focus for the BOJ. (See MNI BOJ WATCH: Board To Hold, Examine Economy, Price Risks) Exports of automobiles to the U.S. fell 14.2% following 4.3% in July.