Japan’s Exports Increasing but Still Lack Strong Momentum

Japan’s exports rose more than forecast in July, bouncing back from two straight declines to support an economy that contracted last quarter by the most since a record earthquake in 2011.

Overseas shipments rose 3.9 percent from a year earlier, the finance ministry said in Tokyo today. That’s higher than the median estimate for a 3.8 percent gain in a Bloomberg News survey of 28 economists. Imports rose 2.3 percent, leaving a deficit of 964 billion yen ($9.36 billion).

The rebound in shipments may help Prime Minister Shinzo Abe to raise the sales tax again after boosting it to 8 percent in April. The economy is forecast to expand an annualized 2.9 percent this quarter after contracting 6.8 percent in the April-June period, as consumers and businesses cut spending after the tax increase.

Bloomberg

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