| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Balance | ¥-1,456.2B | ¥-1,726.4B to ¥-1,036.9B | ¥-695.3B | ¥-621.8B | ¥-628.7B |
| Imports - Y/Y | 13.7% | 8.3% to 18.0% | 2.3% | 16.6% | |
| Exports - Y/Y | 10.0% | 5.5% to 10.2% | 5.6% | 10.3% | 10.2% |
Highlights
Japanese export values rose 5.6 percent for the ninth straight year-over-year increase in August, led by solid demand for semiconductors and semiconductor-making equipment, but the rate of growth was slower than the consensus forecast of a 10.0 percent. Import values gained 2.3 percent, also much smaller than the consensus call of 13.7 percent. The fifth straight increase was led by drugs, refined petroleum products and computers.
The trade balance recorded a ¥695.3 billion deficit, much narrower than the median forecast of a ¥1,456.25 billion deficit and followed a revised ¥628.7 billion shortfall.
Shipments to China, a key export market for Japanese goods, posted their ninth straight increase. Japanese exports to the European Union fell on year for the fifth straight month and even to exports to the U.S. marked their first drop in 35 months.
The trade balance recorded a ¥695.3 billion deficit, much narrower than the median forecast of a ¥1,456.25 billion deficit and followed a revised ¥628.7 billion shortfall.
Shipments to China, a key export market for Japanese goods, posted their ninth straight increase. Japanese exports to the European Union fell on year for the fifth straight month and even to exports to the U.S. marked their first drop in 35 months.
Market Consensus Before Announcement
A deficit of ¥1,456.2 billion is the consensus for August's trade balance versus a deficit of ¥621.7 billion in July. Both imports and exports posted strong year-over-year gains in July but especially imports which surged 16.6. percent.
Definition
Merchandise Trade balance measures the difference between imports and exports of both tangible goods and services. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade.
Description
Japan's merchandise trade balance measures visible trade and excludes services. Specifically it is the difference between imports of goods and exports of goods. A positive value indicates a trade surplus (exports exceed imports) while a negative value indicates a trade deficit (imports exceed exports). Movements in the trade balance reflect altered demand for Japanese exports which subsequently impact the yen's value and directly affect GDP growth because of the economy's dependence on trade.
The report gives insight into changing trends regarding Japanese trade. Such developments are especially important for Japan, which is an export-oriented economy that has historically experienced large trade surpluses and any change can have a dramatic effect on the domestic economy. Typically the headline number is the change from the previous year in yen along with the percentage change in exports and in imports from the previous year.
The report gives insight into changing trends regarding Japanese trade. Such developments are especially important for Japan, which is an export-oriented economy that has historically experienced large trade surpluses and any change can have a dramatic effect on the domestic economy. Typically the headline number is the change from the previous year in yen along with the percentage change in exports and in imports from the previous year.
