TOKYO (AP) — Japanese government data is showing Japan’s economy grew at a better-than-expected 1.8% seasonally adjusted annualized rate during the April-June quarter on healthy consumer spending and capital investment.

The Cabinet Office reported Friday Japan’s gross domestic product or GDP — the total value of a nation’s goods and services — was lifted by solid spending in the private sector as well as government investment, although exports faltered.

Worries have lingered in the region over the ongoing trade dispute between the U.S. and China, which threatens global and regional growth.

President Donald Trump has threatened to impose 10% tariffs on all Chinese imports to the U.S. not already hit with tariffs of 25%. China retaliated by weakening the yuan but later stabilized the yuan.