CIYMI, trade data from China for September was not positive.
export growth significantly slowed in September, while imports also decelerated, missing forecasts. This suggests manufacturers are reducing prices to clear inventory ahead of tariffs from key trade partners.Export growth, previously a strong point for China’s economy, is losing momentum. This is adding to weak domestic demand and a property market debt crisis, highlighting the need for stronger economic stimulus.In September, exports grew 2.4% year-on-year, the slowest since April, well below the expected 6% increase. Prior was 8.7%. Imports grew only 0.3%, missing the 0.9% forecast. Prior was +0.5%.China’s trade surplus shrank to $81.71 billion from $91.02 billion in August.Growing trade barriers, particularly from the EU, U.S., and Canada, are expected to further constrain China’s export growth.
Stimulus efforts continue:
China Announces CNY 6T treasury bond plan to support local debt & property mkt stability
This article was written by Eamonn Sheridan at www.forexlive.com.
