By Tetsushi Kajimoto
TOKYO (Reuters) – Japan's exports rose for a fifth straight month in April, supported by a weak yen, but shipment volumes struggled as growth was affected by weak demand, government data showed on Wednesday.
The trade data clouds policymakers' hopes that exports will offset weak domestic consumption. Export volumes remain weak as China, Japan's largest trading partner, struggles to mount a convincing recovery and the US economy loses momentum.
Japan's exports rose 8.3% in April from a year earlier, Finance Ministry data released on Wednesday showed, falling short of the 11.1% increase expected by analysts in a Reuters poll.
However, in terms of volume, Japanese shipments fell 3.2% year-on-year in April, down for the third straight month.
“The weak yen and global inflation appear to be pushing the value of exports higher, but the volume of exports underscores weak global demand,” said Takeshi Minami, chief economist at Norinchukin Research Institute. “Exports remain weak at the moment as pent-up demand for cars continues to wind down.”
The trade data comes as Japan seeks to drive sustainable growth supported by rising wages and perpetual inflation, which are seen as prerequisites for the central bank to shift away from near-zero interest rates.
The trade statistics come a week after data showed Japan's economy contracted by 2% in the first quarter, with exports of goods and services falling by 5%, leaving the economy without a growth engine.
Imports rose 8.3% in April, driven by increases in aircraft and computers, swinging the trade balance to a deficit of 462.5 billion yen ($2.96 billion).
Separately, a monthly survey conducted by Reuters on Wednesday showed that Japanese business sentiment remained stable in May, but manufacturers and service sector companies complained that inflationary pressures caused by a weak yen were pressuring profit margins.
Further clouding the outlook, manufacturers surveyed by the Cabinet Office expected core machinery orders, which serve as a leading indicator of capital spending in the next six to nine months, to fall 1.6% this quarter, government data showed.
($1 = 156.1900 yen)