Japanese Exports and Manufacturing Business Confidence Decline Over US-China Trade Tensions

Escalating trade tensions between US and China continue to impact the Japanese economy, with exports falling for the seventh consecutive..

Written by: Arslan Butt • Thursday, July 18, 2019 • 1 min read

Escalating trade tensions between US and China continue to impact the Japanese economy, with exports falling for the seventh consecutive month in June. June’s exports declined by 6.7% YoY as a result of the US-China trade war, while manufacturers’ business confidence fell to a three-year low.

According to the Reuters Tankan survey, the manufacturers’ sentiment index fell from a reading of 6 in June to 3 in July over the uncertainties caused by global trade tensions. While the service sector sentiment improved in July, it is forecast to worsen in the coming quarter, which points to more worrying signs as far as the Japanese economy is concerned.

The decline in June’s exports came in worse than the forecast, which was for a 5.6% fall, but was slightly better than the 7.8% decline posted in May. Weak exports have hampered Japan’s factory output and these latest figures increase the possibility of the BOJ stepping in with more stimulus measures to boost the economic performance.

On Thursday, USD/JPY seems mostly unaffected by this news, trading at 107.70 at the time of writing.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.