ICYMI – China’s exports grow at their slowest pace in 5 months in September

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.