Japan’s June Exports Fall Unexpectedly

Japan’s exports unexpectedly fell in June for a second straight month, weighed down by a drop in shipments to Asia and the United States, signalling that weak external demand may require bolder domestic policies to sustain the recovery.

Exports fell 2.0 percent in June from a year earlier, compared with a 1.0 percent increase expected by economists in a Reuters poll, data from the Ministry of Finance showed on Thursday.  That followed a 2.7 percent decline in the prior month, which was the first annual drop in 15 months.

Sluggish exports, a weak spot in the world’s third largest economy, have been a concern for policymakers who hoped that a recovery in external demand would help offset the pain from the April sales tax hike to 8 percent from 5 percent.

Reuters

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