Japan: Merchandise exports increase in June
Yen-denominated merchandise exports rose 1.5% annually in June, on the heels of May’s 0.6% increase but undershooting market expectations. Meanwhile, merchandise imports plummeted 12.9% on an annual basis in June (May: -9.8% yoy), marking the weakest reading since September 2020 and also undershooting market expectations.
As a result, the merchandise trade balance was JPY 43 billion in June, contrasting the JPY 138 billion deficit in May.
On the reading, Nomura analysts said:
“After making adjustments for inflation and seasonality, we estimate that real exports rose by a sharp 4.8% m-m in June. Some of this substantial growth is likely a reaction to the decline in May (-4.1%). Real exports in Apr–Jun were up 2.7% from the Jan–Mar average, recovering roughly 80% of the ground lost from the 3.2% q-q decline in Jan–Mar.”