TOKYO, June 19 Reuters Japan39;s weak yen sharply boosted the value of exports in May but the volume of sales shrank for the fourth consecutive month, highlighting that global demand is still relatively soft and complicating the central bank39;s monetary tightening path.

The Bank of Japan last week took a step forward to reduce its huge bond purchases as part of plans to exit years of massive stimulus. The soft underbelly in the trade report though adds to the picture of a fragile economy, making future interest rate hikes far from assured.

Shipments rose 13.5 yearonyear in value terms in May, driven by U.S.bound shipments of cars and Chinabound chipmaking machinery, data from the Ministry of Finance MOF showed on Wednesday. That compared with a 13.0 increase seen by analysts in a Reuters poll and an 8.3 gain in April.

Exports in terms of volume, however, dipped 0.9 yearonyear in May, reflecting tepid global demand.

The big increase in exports was caused by the weak yen, but actual demand was not that strong, Takeshi Minami, chief economist at Norinchukin Research Institute, said.

Europebound exports are weakening, U.S.bound shipments are peaking out and demand from China is struggling to grow, Minami said. As overall exports are likely to slow down going forward, you cannot expect exports to become a main engine of growth over the next 12 years.

China39;s economy, a key engine of global growth, has struggled to mount a solid postCOVID recovery amid a protracted…