China Sept export growth hits 5-month low as global demand cools
2024.10.14 05:17
BEIJING (Reuters) – China’s exports grew at the slowest pace in five months in September, suggesting manufacturers are no longer rushing out orders ahead of tariffs from several trade partners and that global demand for Chinese goods is softening.
Outbound shipments from the world’s second-largest economy grew 2.4% on year by value last month, customs data showed on Monday, missing a forecast 6.0% increase in a Reuters poll of economists. Exports rose 8.7% in August.
Imports edged up 0.3%, missing expectations for a 0.9% increase and versus 0.5% growth previously.
China’s exports grew at their fastest pace in nearly 1-1/2 years in August, but economists cautioned that officials in the world’s second-largest economy should avoid becoming too reliant on global demand as they work to bolster overall growth.
On Saturday, Chinese officials announced plans to ramp up debt issuance to aid local governments in managing their debt problems and provide increased support to low-income earners. However, they did not state the size of the fiscal stimulus at the highly anticipated news conference, disappointing markets.
Analysts anticipate it will take a long time to restore consumer and business confidence and get the $19 trillion economy on a more solid footing. A housing market recovery, in particular, could be a long way off.
Last week, the head of China’s state planner said he was “fully confident” of achieving the government’s full-year growth target of around 5%.
Manufacturing activity shrank for a fifth straight month in September, with new export orders falling to their worst in 7 months. Analysts have attributed previous months’ strong export performance to factory owners slashing prices to find buyers.
The European Commission last week saw its motion to impose additional duties on electric vehicles built in China of up to 45% pass in a divided vote of EU member states, joining the U.S. and Canada in tightening trade measures against China.
China’s overall trade surplus narrowed to $81.71 billion in September from $91.02 billion in August and missed a forecast of $89.80 billion.
