Japan’s trade deficit widened significantly to JPY 536.6 billion in September 2026 from JPY 277.7 billion in the same month a year earlier, underperforming market expectations of JPY 181.0 billion. It marked the fifth consecutive month of deficit, as imports grew faster than exports. Imports increased 18.9% year-on-year to JPY 11,508.8 billion, following a 28.0% surge in August but falling short of forecasts of 19.6%, marking the softest growth since May. Exports rose at a milder 16.7% to JPY 10,972.2 billion, missing estimates of 20.1%. Outbound shipments increased for a 13th straight month, supported by resilient demand for AI-related chips, despite supply-chain disruption linked to the Middle East conflict.