Tokyo, Sep 18 (AP) Japan posted a trade deficit for a second straight month in August, the Finance Ministry said Wednesday, despite signs of sluggish consumer spending that weighed on imports.

Japan's trade deficit totalled 695 billion yen, or USD 4.9 billion, down 26 per cent from a year earlier, the ministry said.

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Exports totalled 8.4 trillion yen (USD 59 billion), up 5.6 per cent from the same month the previous year. Shipments to Asia rose while exports to the US fell.

Imports totalled 9.1 trillion yen (USD 64 billion), up 2.3 per cent from a year earlier. By region, imports from European nations, in categories such as pharmaceuticals, showed the strongest growth.

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Both numbers fell short of forecasts for 10 per cent growth in exports and and even higher increases for imports.

The Japanese yen has gained in value against the US dollar in recent weeks, helping to boost the country's purchasing power. The dollar had traded at levels over 150 yen earlier this year but in recent days has dipped to about 140 yen. (AP)

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