August was not a good month for the Japanese export market as it fell 8 percent due to economic tensions that created a major disruption on demand in the region, affecting vehicles, chemicals, and machinery, finance ministry officials bared.
The country's exports had a total $56 billion (6.2 trillion yen) output, while its imports were down 11 percent, the fastest pace in nearly three years, to $57 billion (6.1 trillion yen), indicating sluggish demand from the both domestic and overseas segment.
Deliveries to the US declined 4.5 percent in terms of dollars, to $10.8 billion (1.1 trillion yen), while imports from the same region weakened 8.8 percent to $6.5 billion (718.5 billion yen). Japanese surfeit inventory with the US grew almost 5 percent, sources disclosed.
Japan's economic contract with China was a different story, with exports plunging 11 percent and imports shedding over 8 percent. The country's exports to most other Asian markets, which account for over 50 percent of Japan's total exports, likewise fell 11 percent in the same month.
The negative figures put more weight on Japan's central bank to widen its easing measures during its policy meeting Thursday to fan positive trade optimism and buoy its factory output, which has struggled from a bleak global economic outlook.
Japan's dismal three-quarter export performance comes on the heels of adjusted figures that showed its economy grew just slightly as projected in the April to June period as market spending was downgraded from its previous expectations.
The latest figures also come a day before economic ministers and the Bank of Japan decide Thursday whether to extend an already broad stimulus measure to cushion the government from a looming downturn and safeguard its growth sources.
Japan's currency growing-strength against its major counterparts was also a factor, but trade in the financial markets could bounce back in the next few weeks, Maricel Thieliant of Capital Economics pointed out. However, the general viewpoint, she said, is that "exports will possibly remain weak in the coming year."
A state survey of trade posted late Wednesday showed consumer sentiment at its worst since after March 2011 earthquake and tsunami that wreaked havoc on Japan's northeastern shorelines.
Meanwhile, Capital Economics said that looming over the forecast is an increase in sales tax set to be imposed next month that is expected to drag down the country's spending capacity.
