Ministry of Finance data showed on Thursday that exports rose 0.6% year-on-year in May, for the 27th straight month of rises, led by 66% growth in car shipments.
Reuters GraphicsThis year, domestic demand may temporarily outpace slumping exports as a key driver of growth, said Takeshi Minami, chief economist at Norinchukin Research Institute.
Separate government machinery orders data, also released Thursday, underlined the struggles faced by manufacturers though the overall numbers suggested the services sector is providing some cushion to the economy.
U.S.-bound exports, another key market for Japanese exports, grew 9.4% in the year to May on double-digit gain in car shipment.
"For the outlook of Japanese exports, the U.S. Fed's rate-hike pause is a positive news that will further vitalise American private consumption", said Kazuma Kishikawa, economist at Daiwa Institute of Research.
Persons:
Darren Tay, Takeshi Minami, Kazuma Kishikawa, Tetsushi Kajimoto, Riddhima Talwani, Shri Navaratnam
Organizations:
Ministry of Finance, Capital Economics, Reuters, Norinchukin Research, Bank of Japan, Daiwa Institute of Research, Thomson
Locations:
TOKYO, Taiwan, South Korea, Japan, China, U.S