The trade balance for last month was -JPY622bn, compared with a surplus of JPY224bn in June and a deficit of JPY61bn in July 2023. The consensus forecast was for a JPY331bn.

Imports jumped by 16.6% year-on-year, accelerating sharply from the 3.2% annual growth registered the month before and ahead of the 14.9% expected.

This was the highest level of import growth since January 2023, with imports of mineral fuels, electrical machinery, chemicals, manufactured goods and food rising strongly.

Meanwhile, exports rose by 10.3%, up from 5.4% the month before but below the 11.4% expected by economists.