Reportedly, Japan’s exports decreased for an eighth month in July, whereas the producers’ confidence turned pessimistic for the first time in last 6 Years as China-bound sales fell again in a fresh indication that the U.S.-China trade battle can tip the economy into recession. The downcast data highlighted the challenge for Japanese lawmakers worried that extended weakness in the overseas demand will constrain a sharp economic downturn at the regional level. The data by the Ministry of Finance showed that in July, the exports declined by 1.6% compared to last year, which was dragged down by China-bound consignments of semiconductor and car parts production equipment. That was correlated with a 2.2% decrease anticipated by economists.
It marked the greatest run of downturns in exports from a 14-Month stretch from October 2015–November 2016. Still, there was some hope for shippers, since export volume increased by 1.5% in July yearly that was the first helpful reading in nine months. Discretely, the Reuters Tankan poll showed that Japanese manufacturers’ business sentiment turned negative for the very first time from April 2013 in August. Taro Saito—Executive Research Fellow from NLI Research Institute—said, “My feeling was that the yearly surge in the export volume was considerably stronger than anticipated. That is positive since the declining export is the biggest problem faced by the Japanese financial system.”
Similarly, speaking about recession, recently US President Donald Trump dismissed the fears of a recession. President Trump along with top White House executives dismissed concerns that financial growth might be faltering, stating that they saw little peril of recession in spite of a volatile week on the international bond markets, and insisting their trade battle with China was doing no harm to the U.S. Trump said, “We are doing enormously well, our consumers are wealthy, I gave a tremendous tax curb, and they are loaded up with money.”