Japan trade balance shrinks less than expected in Aug; Imports, exports lag

Published 18/09/2024, 01:06
© Reuters.
USD/JPY
-
JP225
-

Investing.com-- Japan’s trade balance shrank less than expected in August, although growth in both imports and exports missed expectations amid sluggish demand and disruptions in local output. 

The country’s trade balance was a deficit of 695.3 billion yen ($4.93 billion) in August, government data showed on Wednesday. The reading was stronger than expectations for a deficit of 1.380 trillion yen, but widened from the 628.7 billion yen deficit seen in the prior month.

The wider deficit was driven chiefly by a smaller-than-expected increase in exports, which also slowed from the prior month. Exports grew 5.6% year-on-year against expectations of 10%, with growth slowing from the 10.2% rise seen in the prior month. 

A stronger yen weighed on exports through August, as a hawkish Bank of Japan and expectations of U.S. interest rate cuts saw the currency come close to 2024 peaks during the month.

Japan's trade deficit was also came amid a substantially smaller-than-expected increase in imports, with growth slowing even as higher wages fueled improved local demand in recent months. 

Japanese imports grew 2.3%, a fraction of expectations for a 13.4% rise, and slowing sharply from the 16.6% jump seen in the prior month.

The weak import reading spurred some doubts over just how much local demand was improving on the back of strong wages, especially as the country grappled with an extended deflationary trend over the past two years.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.