14 Oct 2013
China’s exports growth surprisingly lower
FXstreet.com (Barcelona) - China's trade balance figures for the month of September came surprisingly low at 15.2B vs 27.7B expected and 28.6B last. The main contributor to such a downbeat reading were the extremely weak export numbers, down 0.3% vs 6.0% expected and 7.2% last, with imports recording a +7.4% increase vs 7.0% expected and 7.0% last.
As Reuters notes: "Analysts said weak exports underscored worries about flagging global demand, which may crumble further in coming months - especially in emerging markets - when tighter U.S. monetary policy pushes investors away from it." As an early indication of what might lie ahead, Chinese exports to Southeast Asia, were at a 17-month low in September.
Being quoted by the WSJ, HSBC economist Ma Xiaoping said "new orders should have begun to come in from abroad for the Christmas season." Meanwhile, RBS economist Louis Kuijs said "the over-invoicing of exports to disguise capital inflows—which started in H2 2012 and lasted into the first half of this year but has since waned—inflated the base in September 2012."
In a more optimistic note, China's imports were strong, with Iron-ore imports recording fresh record at 74.58 million tons, which represents a 9% increase in August and 15% on a yearly basis.
As Reuters notes: "Analysts said weak exports underscored worries about flagging global demand, which may crumble further in coming months - especially in emerging markets - when tighter U.S. monetary policy pushes investors away from it." As an early indication of what might lie ahead, Chinese exports to Southeast Asia, were at a 17-month low in September.
Being quoted by the WSJ, HSBC economist Ma Xiaoping said "new orders should have begun to come in from abroad for the Christmas season." Meanwhile, RBS economist Louis Kuijs said "the over-invoicing of exports to disguise capital inflows—which started in H2 2012 and lasted into the first half of this year but has since waned—inflated the base in September 2012."
In a more optimistic note, China's imports were strong, with Iron-ore imports recording fresh record at 74.58 million tons, which represents a 9% increase in August and 15% on a yearly basis.