in

Japan’s exports rise at slower pace, pressuring fragile economic recovery

TOKYO (Reuters) – Japan’s exports rose at a much slower-than-expected pace in August and shipment volumes continued to slide, data showed on Wednesday, a sign that slowing global demand was weighing on a fragile economic recovery.

Japan is seeking to drive sustainable economic growth, backed by higher wages and solid consumption, though external risks from a potential slowdown in the U.S. and a weak Chinese economy are clouding the outlook.

Total exports rose 5.6% year-on-year in August, up for a ninth straight month, data showed, less than a median market forecast for a 10% increase and following a 10.3% rise in July.

Overall shipment volumes fell 2.7% last month from the year-ago period, the seventh consecutive month of declines.

Exports to China, Japan’s biggest trading partner, rose 5.2% in August from a year earlier, while those to the United States were down 0.7%, the data showed.

Imports grew 2.3% in August from a year earlier, versus a 13.4% increase expected by economists.

As a result, the trade balance stood at a deficit of 695.3 billion yen ($4.90 billion), compared with the forecast of a deficit of 1.38 trillion yen.

A rise in personal consumption helped Japan’s economy rebound strongly in the second quarter from a slump at the start of the year, but the growth was revised down slightly last week.

In a sign of the economic fragility, a Reuters monthly poll showed last week that business confidence at big Japanese manufacturers sank to a seven-month low in September, with managers across a wide range of sectors citing soft Chinese demand as a concern.

The Bank of Japan is expected to keep monetary policy steady at a two-day meeting that ends on Friday, but signal that further interest rate hikes are coming and highlight progress the economy is making in sustaining inflation around its 2% target.


Source: Economy - investing.com

Dollar catches footing ahead of Fed

Figure Markets Announces Global Launch, 8% Yield Opportunity