BEIJING, June 7 (Reuters) - China's exports grew more
quickly and for a second month in May, suggesting factory owners
are managing to find buyers overseas and providing some relief
to the economy as it battles to mount a durable recovery.
The jury is still out, however, on whether the export sales
are sustainable while a protracted property crisis has led to
persistent weakness in domestic demand - a factor highlighted
again in last month's imports figures.
Outbound shipments from the world's second-largest economy
grew 7.6% year-on-year in value in May, customs data showed on
Friday.
But imports increased at a slower 1.8% pace, from a 8.4%
jump in the previous month, highlighting the fragility of
domestic consumption.
The export figure beat a forecast 6.0% increase in a Reuters
poll of economists and a 1.5% rise seen in April, but was likely
also aided by a lower base of comparison, after rising interest
rates and inflation in the U.S. and Europe squeezed external
demand in the previous year.
Friday's shipments data possibly also suggests a global
cyclical upturn in the electronics sector is helping China's
sales of components and finished manufactured goods.
Over recent months, a flurry of data has shown different
parts of the $18.6 trillion economy recovering at varying
speeds, heightening uncertainty about the outlook.
While first quarter growth blew past forecasts and strong
March export and output data suggested improving global demand
might aid officials' efforts to get the economy back on a more
even keel, more recent indicators reflecting soft domestic
consumption have eroded much of that earlier optimism.
A protracted property sector crisis remains the biggest drag
on China's economy, with low investor and consumer confidence
hurting domestic consumption and undermining business activity.
Adding to the worries for policymakers, both the new orders
and new exports orders sub-indices of a factory owners survey
run by the National Bureau of Statistics for May tipped back
into contraction after two months of growth.
However, Friday's trade data should give authorities some
breathing space as they continue their efforts to foster a
broad-based economic recovery.
The International Monetary Fund last month upgraded its
China growth forecast for 2024 in line with Beijing's growth
target of "around" 5%, but warned of risks to the economy from
the property troubles.
China's trade surplus grew to $82.62 billion last month,
compared with a forecast of $73 billion and $72.35 in April.