- Oct exports +27.1% yr/yr vs +24.5% forecast, +28.1% in Sept
- Oct imports +20.6% yr/yr vs +25.0% forecast, +17.6% in Sept
- Oct trade surplus at $84.54 bln, vs $65.55 bln forecast
China’s export growth slowed in October but beat forecasts, helped by booming global demand ahead of winter holiday seasons, an easing power crunch and an improvement in supply chains that had been badly disrupted by the coronavirus pandemic.
However, imports missed analysts’ expectations, likely pointing to the overall weakness in domestic demand.
Outbound shipments jumped 27.1% in October from a year earlier, slower than September’s 28.1% gain. Analysts polled by Reuters had forecast growth would ease to 24.5%.
Zhiwei Zhang, chief economist at Pinpoint Asset Management, said the strong exports would help to mitigate the weakening domestic economy, and give the government greater room for manoeuvre on economic policy.
“The government can afford to wait until the year-end to loosen monetary and fiscal policies, now that exports provide a buffer to smooth the economic slowdown,” he said.
Recent data has pointed to a slowdown in manufacturing. Factory activity shrank for a second month in October, an official survey showed, while growth in industrial output eased to the lowest since March 2020 – the first wave of the pandemic. read more