China’s exports, imports fall in October, exceeding estimates

According to media reports, China’s exports and imports posted drops in October exceeding estimates due to weak global and domestic demand and uncertainties about sustainable growth in the Chinese economy. Chinese exports decreased 7.3% year over year exceeding analysts’ estimates, which called for a drop of 6% in October from the drop of 10% in September. Exports to the European Union were down 8.7% in October from a month earlier while those to USA declined by 5.6% in October from an 8.1% decrease in September.

Imports also posted a decline of 1.4% in October following a 1.9% fall in September, falling for the second consecutive month in October. It exceeded analysts’ preliminary expectations of a 1% drop in imports in a survey conducted by Reuters.

For the January-October period, imports decreased 7.5% from the same period of last year while exports decreased 7.7% in the same period.

China posted a trade surplus of $49.06 billion in October when compared to $41.99 billion in September, below initial expectations of $51.70 billion.

It is reported that the Chinese economy was steadying and some analysts asserted that the decrease in October may stem from the season. However, others suspect the property boom is peaking which led to the decrease in imports.

Noting that the rate of decline slowed in October, economists at ANZ stated, "Our conclusion is that external demand remains sluggish but it has not worsened significantly. Although both exports and imports have fallen short of expectations, they have improved on a year-on-year basis."