Japan’s exports continued to rise in April, but shipments to US declined

Japan's exports rose for the 14th straight month in April, but shipments to the United States slowed.

Ministry of finance data released today showed exports rose 5.1 per cent in the year to April, higher than what economists had predicted.

On a seasonally adjusted basis, exports rose 0.6 per cent in April from the previous month.

With export growth below last year's levels as the effect of a weak yen wears off, policymakers are becoming less confident of a lasting export upturn that would cushion a dip in domestic spending after Japan raised its sales tax to 8 per cent from 5 per cent on 1 April.

Shipments to the United States, a key market for Japanese products, rose 1.9 per cent on an annual basis. This was a slowdown from a 3.6 per cent gain in March.

The Bank of Japan is expected to keep its monetary policy unchanged when it announces its decisions later today.

The central bank is expected to take heart from surprisingly strong first-quarter capital investment and buoyant machinery orders for March, which some economists took as a sign companies are optimistic that overseas sales will eventually pick up.