Japan's July export growth disappoints as volumes decline again

Japan's July exports grew less than expected, with ongoing declines in shipment volumes, casting doubt on the economic recovery.

Exports rose by 10.3% year-on-year in July, missing the 11.4% forecast, despite a strong Q2 rebound driven by increased consumption.

July’s export growth was the eighth month in a row, but shipment volumes fell 5.2%, continuing a six-month downward trend.

Exports to China increased by 7.2% due to high demand for chip-making equipment, while exports to the U.S. rose by 7.3%.

Imports surged by 16.6% in July, surpassing the 14.9% forecasted increase.

The trade balance showed a deficit of ¥621.8 billion ($4.28 billion), much larger than the predicted ¥330.7 billion deficit.

The Q2 economic rebound suggested the central bank might continue tightening monetary policy.

The weaker-than-expected export growth and persistent volume declines add uncertainty to Japan's economic outlook.

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