July trade data showed both export and import values reaching record highs, while imports grew faster than exports, resulting in a trade deficit for the third consecutive month.
July exports totaled ¥11.5118 trillion, up 23.2% year on year and increasing for the 11th consecutive month. Exports of automobiles and semiconductor-related products rose sharply, with volumes also exceeding the year-earlier level.
Imports totaled ¥12.1463 trillion, up 27.8% year on year. Imports of crude oil, semiconductor components and nonferrous metals increased sharply, and import growth outpaced export growth.
The trade balance was a deficit of ¥634.5 billion, marking the third consecutive month of deficit. Despite the high export value, the weaker yen and faster import growth combined to widen the deficit.
The exchange rate was ¥161.83 per US dollar, representing an 11.2% year-on-year depreciation of the yen. While the weaker yen increased the yen value of exports, it further inflated the yen-denominated value of imports.