The wider-than-expected deficit is due to high oil prices, which have now peaked. The growth in the value of imports will not last as we expect crude prices will cool later this year.
This year we have hit record highs for consolidated net sales, consolidated operating income and consolidated net income. These favorable results are due to a continued increase in domestic and overseas car production for Japanese auto manufacturers.
Aside from the effects of high oil prices, growth in imports in general can be interpreted as a sign that domestic demand is robust, another reason to say the Japanese economy is on the right track.