By Makiko Yamazaki
TOKYO, Feb 18 (Reuters) – Japan’s exports rose for a fifth consecutive month in January, data showed on Wednesday, a sign that firm global demand was underpinning a fragile economic recovery.
The outcome follows separate data this week that showed the economy limped back to meagre growth in the fourth quarter, significantly missing market forecasts due to weaker-than-expected exports and capital expenditure.
Total exports by value rose 16.8% year-on-year in January, data showed, more than a median market forecast for a 12% increase and following a 5.1% rise in December.
Exports to the U.S. fell 5% in January from a year earlier.
Those to China were up 32%, boosted by a surge in demand ahead of the Lunar New Year in mid-February, later than usual.
Imports dropped 2.5% from a year earlier, compared with market forecasts for a 3% increase.
As a result, Japan ran a trade deficit of 1.15 trillion yen ($7.51 billion) in January, compared with the forecast of a 2.14 trillion yen deficit.
Japan’s exports have been recovering after an initial blow from U.S. tariffs dragged down U.S. shipments in the July-September quarter, but momentum has remained fragile despite a September trade deal with Washington that set a baseline 15% tariff on nearly all goods.
Analysts expect the Japanese economy to gather momentum with the help of domestic drivers such as private consumption, with wage growth expected to ease the burden on households from rising living costs.
($1 = 153.2000 yen)
(Reporting by Makiko Yamazaki; Editing by Christopher Cushing)
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