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Domestic demand shrinks in Japan – Danske Bank

FXStreet (Edinburgh) - Flemming Nielsen, Senior Analyst at Danske Bank, assessed the recent Japanese trade balance figures.

Key Quotes

“In Japan the foreign trade data released overnight showed that exports rebounded slightly in July to 3.9% y/y (consensus: 3.8% y/y) from -2.9% y/y in June”.

“Import growth was also a bit stronger than expected in July but the overall picture remains that import growth has slowed markedly in the wake of the consumption tax hike in April, indicating subdued domestic demand”.

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