Japan racked up another jumbo trade deficit in July, but behind the disappointing figures were also some optimistic signs. Here are five takeaways from Monday’s data:
Rising temperatures, rising imports. Imports soared 19.6% on year, their fastest pace of increase in more than three years. German cars and Chinese clothes were among some of the import items that recorded a rise, but by far the biggest contributor was crude oil, whose imports grew 30.2%, due to strong demand for fuel to generate electricity amid a hotter-than-usual summer and a weaker yen.
Export volume rises for 1st time in 14 months. But in a possible indication that Japan’s export slump may have turned a corner, exports rose in volume by 1.8% on year, marking their first increase since May 2012. By value, exports grew 12.2% from a year earlier.
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