Japanese exports fall for tenth consecutive month in July

Japanese exports shrank at their quickest pace since the Great Financial Crisis against a backdrop of weak demand overseas and a stronger currency, prompting aggressive rhetoric from government officials against undue strength in the country´s currency.

Sales of goods to customers abroad dropped at a 14% year-on-year clip in July (consensus: -13.7%), for a tenth consecutive monthly fall, marking the sharpest decline since October 2009.

In June exports had fallen by 7.4%.

Japan exported fewer durable goods during that month, with car shipments to the US notably lower. Total exports to the States fell at a 11.8% pace, much worse than June´s decline of 6.5%.

Exports to China were also weaker, dropping by 12.7% year-on-year, up from a 10.0% drop in June.

Total imports shrank at a rate of 24.7% over the year, worse than June´s contraction of 18.8% (consensus: -20.0%).

In real terms, exports were off by 3.2% over the month, according to the Bank of Japan, alongside a contraction of 1.1% for imports.

Acting as a backdrop, officials from the Ministry of Finance, the BoJ and Japan´s financial regulator held an emergency meeting overnight to debate recent events on foreign exchange markets.

"We are constantly watching for speculative moves and will respond with the necessary steps if needed," Vice Finance Minister for International Affairs Masatsugu Asakawa reportedly said after the meeting.