Japan Trade Surplus Falls, Imports Rise

Japan’s trade surplus shrank for the second straight month in July as imports grew on the back of improved consumer spending and export growth slowed. The surplus decreased a seasonally adjusted 14.4% in July from June to $6.28 billion, the Finance Ministry said. That was more than the 5.4% slide forecast by economists in a Bloomberg News survey. Exports rose 1.9% from the previous month while imports increased 6.2%. The decline suggests that the sharp rises in the trade surplus have ended, as Japanese government officials have long insisted. And while exports will remain high because of strong overseas demand, tension with Japan’s trading partners will be limited because the U.S. economy remains strong, economists said.