Japan’s exports increased the most in five months in June, boosted by growth in automobile and electronic parts.
The value of overseas shipments rose 9.5 percent from a year earlier, the Ministry of Finance said on Thursday, versus an estimated 10 percent gain. Export volumes were unchanged, signaling limited support for industrial production that has pressured economic growth.
Japan’s recovery stalled in the three months to June, with weakness that Bank of Japan Governor Haruhiko Kuroda is betting won’t persist this quarter. Today’s data indicate that foreign trade dragged on growth, said Marcel Thieliant, an economist at Capital Economics.
“Export volumes have been struggling to rise despite the weak yen,” said Atsushi Takeda, an economist at Itochu Corp. “China will continue to pose a risk to Japan’s economy. Inventory adjustments in China don’t bode well for Japanese exports.”
Imports slid 2.9 percent, leaving a 69 billion yen ($556 million) trade deficit, according to the data.
The yen declined 0.1 percent to 124.08 per dollar at 9:31 a.m. on Thursday in Tokyo.
The Bank of Japan last week lowered its growth forecast for the year through March 2016 to 1.7 percent from 2 percent. Governor Kuroda said developments overseas affected Japan’s exports and weakness in the economy from April to June won’t continue into this quarter.