[ad_1]
China’s exports and imports unexpectedly contracted in October, the first synchronized decline since May 2020, as soaring inflation and rising interest rates hit global demand, while new domestic COVID-19 restrictions disrupted output and Consumption.
Official data on Monday showed that outbound shipments fell 0.3% year-on-year in October, a sharp recovery from a 5.7% increase in September and well below analysts’ expectations for a 4.3% increase. This was the worst performance since May 2020.
Weak trade data for October underscored the challenge facing Chinese policymakers, as exports have been one of the few bright spots in the struggling economy.
read more: Explained: What are the US midterm elections and how they will affect Joe Biden
It has put more pressure on the country’s manufacturing sector and threatens any meaningful economic recovery in the face of persistent COVID-19 restrictions, prolonged housing weakness and the risk of a global recession.
Chinese exporters were unable to even take advantage of further yuan depreciation and the crucial year-end shopping season, underscoring the growing pressure on consumers and businesses around the world.
Domestic demand was tepid, weighed down by new COVID restrictions and the October lockdown, as well as a cooling housing market, which also hurt imports.
Inbound shipments fell 0.7% from September’s 0.3% increase, missing expectations for a 0.1% increase – the weakest result since August 2020.
The data mirrored a recent official survey of factory activity, which showed a sub-index for imports continued to decline last month.
Overall trade data showed a trade surplus of $85.15 billion, slightly up from September’s $84.74 billion and below expectations for a $95.95 billion trade surplus.
[ad_2]
Source link
