TOKYO: Japan annual exports in January jumped the most since late 2013 in an encouraging sign a weak yen is finally boosting the nation’s all-important export engine and helping the economy crawl out of recession.
The shipments data was followed by the Reuters Tankan survey, which showed both manufacturers and service-sector mood improving in February and over the next three months even as some businesses worried about a deteriorating global outlook. The 17.0 percent year-on-year gain in exports marked the fifth straight month of increase, supported by shipments of cars to the United States and of electronics parts to Asia, data by the Ministry of Finance showed.
Ministry officials say exports are on a firm footing, adding that special factors helped boost shipments such as a rebound from last year’s Chinese New Year holidays which fell in January, and extreme cold weather which hit the U.S. economy a year ago.
A pickup in shipments – which had been a soft spot in the economy – is welcome news for policymakers who hope exports will offset still-weak private consumption, and cheaper oil prices will spur firms to spend more on wages and investment, generating a virtuous growth cycle.
And as the economy recovers from recession, stronger exports growth would let the Bank of Japan hold off on any additional stimulus.
