Japan: Merchandise exports decelerate in June
Yen-denominated merchandise exports rose 5.4% in annual terms in June, down from May’s 13.5% rise. June’s result marked the weakest expansion since November and undershot market expectations, albeit only for the second time in seven months. Meanwhile, yen-denominated merchandise imports expanded 3.2% on an annual basis in June (May: +9.5% yoy), marking the weakest result since March.
As a result, the yen-denominated merchandise trade balance improved from the previous month, recording a JPY 0.2 trillion surplus in June (May 2024: JPY 1.2 trillion deficit; June 2023: JPY 0.0 trillion).
Nomura analysts said:
“After adjusting for inflation and seasonality, we estimate that real goods exports were down 0.3% m-m in June 2024, marking a second straight month of decline. Apr–Jun 2024 average real exports were up 1.7% q-q. This means that around 50% of the decline from Oct–Dec 2023 through Jan–Mar 2024 has been recouped.”