2017.07.1922:43:00UTC+00Japan’s Export Rises for Seventh Consecutive Month

Japan's export grew for the seventh month in a row in June led by increased shipments of automobiles and electronics, a signal that demand overseas continues to be the backbone of a gradual economic recovery and supports the Bank of Japan's optimistic economic outlook.

According to data from the Ministry of Finance, exports grew at an annual rate of 9.7 percent in June, against an estimated 9.5 percent increase by economists. It came after a 14.9 percent year-over-year increase in the prior month.

Japan's exports to the U.S. increased 7.1 percent in June compared to the previous year, marking the fifth month of gains. The trade imbalance with the U.S. narrowed to 587.4 billion yen as imports surged 19.3 percent in the year to June.

The data came ahead of the conclusion of BOJ's two-day rate review, at which the central bank is expected to hike its growth projections as strong exports and private consumption increase the prospects of a moderate economic recovery.

But the central bank is also expected to slash its price forecasts and withhold expanding stimulus, underlining a gap between the strong growth and soft inflation.