China's Exports & Imports tumble more than expected in July

BEIJING: China’s exports and imports fell more than expected in July in a rocky start to the third quarter, pointing to further weakness in global demand in the aftermath of Britain’s decision to leave the European Union. Imports fell 12.5 per cent from a year earlier, the biggest decline since February and suggesting China’s domestic demand may be faltering despite a flurry of measures to stimulate economic growth.

Exports fell 4.4 per cent on-year, the General Administration of Customs said recently, while adding that it expects pressure on shipments likely will start to ease in October.

That resulted in a trade surplus of $52.31 billion in July, the biggest since January, versus June’s $48.11 billion. China’s imports have now declined for 21 straight months, while exports have fallen for 12 of 13 months, helping to drag economic growth to its slowest in a quarter of a century.

July exports had been expected to fall 3.0 per cent, compared with a 4.8 per cent decline in June, while imports were seen falling 7.0 per cent, following June’s drop of 8.4 per cent.

China’s exports underwhelmed despite still-strong shipments of steel and oil products, with the latter hitting a record. China has come under fire from trading partners accusing it of dumping its excess industrial capacity in global markets.

China’s economy grew 6.7 per cent in the second quarter from a year ago, beating expectations, as a Government infrastructure spree and housing boom boosted construction activity and demand for materials from cement and glass to steel.

Source: - Dailyshippingtimes.com