Japan's trade data beat in July

Photo: Kevin C. Cox/ Getty Images.

Japanese trade data for July has beaten expectations, but a shallower-than-expected decline in imports resulted in a blowout in the trade deficit.

In annualised terms, exports grew by 7.6% to 6.663 trillion yen, exceeding expectations for an increase of 5.5%, although the figure was below the 9.5% growth rate previously seen in June.

Over the year, exports to the US grew by 18.8%, outpacing growth of 7.8% to Europe, 6.1% to Asia and 4.2% to China.

On the other side of the ledger, imports declined by 3.2% to 6.931 trillion yen, steeper than the 2.9% contraction of June but ahead of expectations for a fall of 7.9%.

With imports declining at a slower-than-expected rate, the trade surplus ballooned to 268.1 billion yen. The figure was far greater than the 69 billion yen deficit of June and expectations for a narrowing to 56.7 billion yen.

While well above expectations for July, the deficit was 72.7% below the 966.5 billion yen figure of a year earlier.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.