In June manufacturing activity rose in Japan, although slower than was expected. Export however dropped, Reuters reports. This causes concerns on potential influence of trade dispute between the US and large economies.

Survey Markit/Nikkei showed that Purchasing Managers’ Index was 53 in June, which is higher than 52,8 in May.

The index is still higher that level of 50, which separates growth from decline.

However, there is a danger sign, since new orders growth was the lowest in ten months and export sales dropped first time since August 2016. It can restrict the further growth.

It is expected that Japan’s economy growth accelerated in the second quarter compared with slowdown in first quarter. Economists think that trade protectionism is the highest risk for the country’s economy.