TOKYO: Japan’s export growth slowed for a second straight month in May, with weak external demand now threatening to erode economic growth in the current quarter.
Ministry of Finance (MOF) data showed exports grew 2.4 per cent year-on-year in May, less than a 3.5 percent gain seen by economists and a 8.0 percent rise in the prior month. Compared with April, exports fell 2.7 per cent.
Export growth, in tandem with domestic demand, is seen as crucial for building on the momentum evident from recent data showing stronger-than-expected economic expansion – led by corporate capital expenditure at the start of the year.
The data will be scrutinised by the Bank of Japan, which is expected to keep its monetary stimulus programme unchanged at its policy review later this week, after having offered a slightly more upbeat view of the economy last month.
