You are here: Home » International » News
Business Standard

China Oct exports beat forecasts, offer buffer to slowing domestic economy

Imports, however, missed analysts' expectations, likely pointing to the overall weakness in domestic demand.

Topics
China exports | China economy | China GDP

Reuters  |  BEIJING 

Photo: Bloomberg
China posted a trade surplus of $84.54 billion last month, above the poll's forecast of $65.55 billion and September's $66.76 billion surplus Photo: Bloomberg

China's export growth slowed in October but beat forecasts as booming global demand for holiday seasons, an easing power crunch and mitigating supply chain disruptions offset some pressures facing the world's second-largest economy.

Imports, however, 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 offer the government with more room to manoeuvre economic policy.

"The government can afford to wait 'til 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 manufacturing slowdown. 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.

However, under heavy government intervention, some supply constraints have started to ease in recent weeks. A power crunch - triggered by a shortage of coal, tougher emission standards and strong industrial demand - has started to ease after heavy government intervention.

Premier Li Keqiang said on Tuesday that China's government will take measures to support the industrial sector as the economy faces renewed downward pressures.

Imports jumped 20.6% in October from a year earlier, accelerating from a 17.6% gain in September but missing the expectations for a rise of 25%.

China's crude oil imports plunged in October to their lowest since September 2018, while coal imports slowed as domestic production boomed. Purchases of iron ore slipped for a second month on easing demand.

China posted a trade surplus of $84.54 billion last month, above the poll's forecast of $65.55 billion and September's $66.76 billion surplus.

The country's economy grew 4.9% in the July-September quarter from a year earlier, the weakest reading since the third quarter of last year.

China's trade surplus with the United States was $40.75 billion in October, Reuters calculations based on customs data showed, down from $42 billion in September.

U.S. Trade Representative Katherine Tai pledged last month to exclude some Chinese imports from tariffs while pressing Beijing over its failure to keep some promises made in a "Phase 1" trade deal made under the Trump administration.

 

(Reporting by Albee Zhang, Stella Qiu and Ryan Woo; Editing by Sam Holmes and William Mallard)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, November 07 2021. 10:27 IST
RECOMMENDED FOR YOU