💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

China's May exports gain steam but imports fall unexpectedly

Published 08/06/2014, 04:54
Updated 08/06/2014, 05:40

BEIJING (Reuters) - China's exports gained steam in May due to the global economic recovery, data showed on Sunday, but an unexpected fall in imports could signal weaker domestic demand.

Exports rose 7 percent in May from a year earlier, quickening from April's 0.9 percent rise, while imports fell 1.6 percent, versus a rise of 0.8 percent in April, the General Administration of Customs said.

The world's second-largest economy's trade surplus widened sharply to $35.9 billion in May from April's $18.5 billion, the customs office said.

That compared with market expectations in a Reuters poll of a 6.6 percent rise in exports, a 6.1 percent rise in imports and a monthly trade surplus of $22.6 billion.

"The data shows that the country's exports growth has returned to a normal level and will continue to improve," customs office spokesman Zheng Yuesheng told state television.

China's commerce ministry had predicted that the trade picture could brighten in May as base efforts fade and government support measures kick in.

Analysts have attributed the weak trade figures partly to an inflated comparison base with last year due to a rash of fake invoicing of exports to beat currency restrictions.

Authorities have cracked down on such activities since May of last year.

The pick-up in exports follows a batch of factory surveys for May that showed improvement in activity, as the government steps up targeted measures to support growth, including quickening construction of railways and public housing and loosening credit conditions for selected banks.

The government has also unveiled some policy support for the export sector, including offering quicker tax rebates for exporters and encouraging more high-tech equipment and consumer goods imports.

Analysts believe that China's property market could put downward pressure on growth even as global demand improves, as evidence mounts of a rapid cooling in what had been one of the few strong spots in the economy.

(Reporting by Kevin Yao; Editing by Paul Tait)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.