Chinese trade unexpectedly drops as demand slowdown worsens

INA – SOURCES
 
China’s exports and imports both unexpectedly fell for the first time in more than two years, with rising risks of a recession causing overseas consumers to buy less and domestic problems such as COVID Zero controls and a housing slump hitting demand at home.
 
Exports in dollar terms fell 0.3% in October from a year earlier, the customs authority explained well below the 4.5% gain projected by economists. Imports also fell, with the 0.7% decline the first drop.
 
The bleak October trade figures highlight the challenge for policymakers in China as exports had been one of the few bright spots for the struggling economy.
 
Outbound shipments in October shrank 0.3% from a year earlier, a sharp turnaround from a 5.7% gain in September, official data showed and well below analysts’ expectations for a 4.3% increase. It was the worst performance since May 2020.
 
The data suggests demand remains frail overall, heaping more pressure on the country’s manufacturing sector and threatening any meaningful economic revival in the face of persistent COVID-19 curbs, protracted property weakness and global recession risks.
 
Chinese exporters weren’t even able to capitalize on a further weakening in the yuan currency and the key year-end shopping season, underlining the broadening strains for consumers and businesses worldwide.