(Repeats to correct machinery orders in paragraph 9 to compare
with month earlier)
By Tetsushi Kajimoto and Kantaro Komiya
TOKYO, March 16 (Reuters) - Japan posted two straight
years of export gains, led by solid U.S.-bound shipments of
cars, although expectations of a strong recovery in demand are
quickly fading amid global monetary tightening and worries about
banks worldwide.
The world's third-biggest economy has struggled to make a
solid post-COVID recovery, undermined by lacklustre household
consumption and a global slowdown. Slowing shipments to China
have also shattered policymakers' hopes for a quick rebound from
the pandemic doldrums.
The trade data by the Ministry of Finance (MOF) showed on
Thursday Japan's exports grew 6.5% year-on-year in February,
undershooting a 7.1% increase expected by economists in a
Reuters poll. It followed a 3.5% rise in the previous month.
Imports rose 8.3%, versus the median estimate for a 12.2%
increase, resulting in a trade deficit of 897.7 billion yen
($6.75 billion).
It marked the biggest trade shortfall for the month of
February.
The Japanese economy narrowly averted a recession in the
final months of 2022, as consumption remained weak while exports
were hampered by slowdown in global growth.
Monetary tightening across the world, supply chain
constraints and the Ukraine war have undercut Japan's recovery.
In a glimmer of hope for a potential pick-up in private
demand, the leading gauge of business investment showed a strong
reading on Thursday.
Core machinery orders rose 9.5% in January from a month
earlier, the biggest monthly hike in more than two years.
Orders from service-sector companies jumped 19.5% to a level
last seen in November 2019, as they ramped up investments for
post-pandemic demand.
However, orders from manufacturing companies fell 2.6%
dragged down by IT and auto firms amid weak global economy and
semiconductor needs.
($1 = 132.9600 yen)
(Reporting by Tetsushi Kajimoto
Editing by Sam Holmes & Shri Navaratnam)
