Japan’s Exports Extend Growth Streak to 19 Months in June
(Bloomberg) -- Japanese exports increased for a 19th straight month in June despite rising tensions in international trade.
Japanese exports have been key to the country’s economic recovery in recent years, although the size of gains has come down from the double-digit figures seen through much of 2017. While there’s a threat of tariffs on car and auto-part shipments to the U.S., the nation is forging ahead with trade deals in other important markets and this week signed a pact that will eliminate EU tariffs on vehicles from Japan.
- Imports were likely to drop off a bit in June after a large amount of inbound shipments of aircraft in May, SMBC Nikko’s Koya Miyamae, Rina Adachi and Yoshimasa Maruyama wrote in a note before the release.
- There’s a high chance that real exports grew in the second quarter, and external demand will help lift economic growth over that period, they wrote.
- Japan’s adjusted trade balance showed a surplus of 66.2 billion yen (forecast 155 billion yen).
- Exports to China, Japan’s largest trading partner, rose 11.1 percent in June from a year earlier.
- Those to the U.S. slipped 0.9 percent.
- Shipments to the EU increased 9.3 percent.
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