MNI BRIEF: Japan Aug Exports Post 4th Straight Drop

Japan’s exports fell for a fourth straight year-on-year decline in August, down 0.1% after July’s 2.6% drop, as shipments of automobiles and iron, and steel products were hit by U.S. tariffs, Ministry of Finance data showed Wednesday.

Automobile exports fell 7.9% in August, the fifth consecutive decline following an 11.4% fall in July. Iron and steel exports dropped 14.9%, easing from July’s 21.0% fall.

Imports slipped 5.2% in August after a 7.4% fall in July, leaving Japan with a trade deficit of JPY242.5 billion, the second in a row after July’s JPY118.4 billion shortfall.

Exports to China, Japan’s largest trading partner, fell 0.5% in August, the sixth straight decline after July’s 3.5% drop, reflecting weaker Chinese demand. Exports to the U.S. fell 13.8% in August, the fifth consecutive fall, with automobile shipments plunging 28.4%, unchanged from July’s pace.

The data is unlikely to prompt the Bank of Japan to alter its view that exports remain broadly flat as a trend.