financetom
Technology
financetom
/
Technology
/
China's exports rise solidly, but slower imports temper outlook
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
China's exports rise solidly, but slower imports temper outlook
Jun 6, 2024 9:35 PM

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.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2025 - www.financetom.com All Rights Reserved