Japan imports, exports both up sharply in July

TOKYO
Japanese exports rose 12.2% on year in July as a weaker yen lifted the value of exports, while imports jumped 19.6% amid surging demand for fossil fuels, the Ministry of Finance said Monday
This has left Japan's merchandise trade balance at a deficit of Y1.024 trillion, extending the monthly shortfall to a 13th month, the longest spell since 1980 when the second oil shock caused a spike in oil prices
Economists surveyed by the Nikkei and Dow Jones Newswires forecast a deficit of Y776.4 billion The figure compares with a year-ago deficit of Y528.6 billion
The July figure also represented a sharp upturn from a deficit of Y182.3 billion in June, as a hotter-than-usual summer increased demand for electricity, necessitating more imports of fossil fuels for power generation
The weaker yen increases the value of export revenues when they are translated into the yen from the dollar and other foreign units
But in volume terms, Japanese exports have remained stagnant this year, weighed down by a sovereign debt crisis in Europe and an economic slowdown in China
While exports represent a small portion of the Japanese economy--about 15%--they are crucial for exporters' earnings and share prices, and a major influence on private consumption