Japan exports, imports grow less than expected in June

Investing.com-- Japan’s exports and imports grew less than expected in June as local economic activity remained subdued, while demand in the country’s biggest export destinations also turned sluggish.

Japanese exports grew 5.4% year-on-year in June, less than expectations for growth of 6.4%, and slowing from the 13.5% jump seen in the prior month.

Imports rose 3.2% year-on-year, much lower than expectations of 9.3% and slowing sharply from the 9.5% jump seen in May.

A softer yen helped buoy export values during the month, but overall sales volume remained weak amid soft demand in top export destinations the U.S. and China. 

Weakness in the yen weighed further on imports, adding to already weak spending trends in the country. Sticky inflation, slow wage growth and a sluggish economy battered Japanese consumer spending in recent months. 

Still, Japan’s trade balance swung to a surplus of 224 billion yen ($1.44 billion), ducking expectations for a deficit of 240 billion yen and reversing sharply from a 1.22 trillion yen deficit in May. 

The middling trade figures come after recent data showed persistent weakness in the Japanese economy, with consumer spending remaining subdued despite a higher outlook for wages.