The pace of China's export growth slowed in May in a sign that weaker global demand is biting, while stronger imports showed the world's second-largest economy is holding up well despite government policy tightening and power shortages.
Exports rose 19.4 per cent in May from a year earlier, slowing from the 29.9 per cent pace in April, while import growth accelerated to 28.4 per cent from 21.8 per cent in April, the customs agency said on Friday.
"The trade data is largely within market expectations, showing a relatively steady growth in both exports and imports," said Chen Yong, analyst at Huatai United Securities in Shanghai."But looking at export figures, they grew at a slower clip last month, indicating there are still uncertainties hanging over the world recovery. The trade surplus in May is still at a relatively high level, which means there remains huge pressure for yuan appreciation."
The slowdown in exports has been anticipated amid a soft patch in economic data in the United States, as the new export orders sub-index for the official PMI has fallen for two consecutive months.
Chinese factories expanded in May at their slowest pace in at least nine months, two purchasing managers' indexes showed, reinforcing evidence of a slowing economy.
China posted a trade surplus of $13.1 billion in May, up from $11.4 billion in April but still below the $19.5 billion
surplus in May 2010 as import growth outstrips exports.
The median forecast of economists polled by Reuters was for exports to rise 21.0 per cent and imports to grow 22.5 per cent, resulting in a trade surplus of $18.6 billion.
China is the biggest buyer of many commodities and as a result, many markets have wobbled on worries about its economic growth slowing and inflation prompting the central bank to tighten monetary supplies further.
Reuters
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