China’s Exports Unexpectedly Misses Expectations For Growth

It is the first contraction since May-20 and on monthly basis, the outbound shipments declined by -7.6%mom, the largest dip since Feb-2

China’s Exports Unexpectedly Misses Expectations For Growth
Photo by Anja Bauermann / Unsplash

According to Chinese customs data released Monday, China's exports unexpectedly fell in October, missing expectations for growth, with a drop in the value of goods sold to the United States and the European Union.

China's exports fell 0.3% year on year in October, falling short of Reuters' forecast of a 4.3% increase. (CNBC)

In USD terms, China’s exports growth registered negative rate of -0.6%yoy in the first month of fourth quarter this year.

It is the first contraction since May-20 and on monthly basis, the outbound shipments declined by -7.6%mom, the largest dip since Feb-2

Lackluster Local Stock Trading
Wall Street closed higher as focus was shifted to politics towards the US mid-term elections 2022 today following a choppy session.

On the other hand, Chinese inbound shipments fell by -1.1%yoy, marking the third consecutive-month of contraction and weakest since Aug-20. On month-on-month basis, imports reduced by -10.4%mom, worst since Feb-22.

"We opine the weakening exports growth reflects softening global demand, in line with moderating trend in manufacturing PMI figures across many countries. Elevated global energy prices and higher monetary rates are adding the pressure on global demand.

"As for imports growth, the indirect effects of Zero-Covid strategy are dragging the domestic economic activities in China.

"However, we expect the second largest economy in the world to reopen its economy earlier than expected in 2023 especially after President Xi Jinping secured a historic third term. The reopening of Chinese economy would be an upside surprise for the economy as well as global trade activities for 2023," says MIDF.