China Trade Tops Expectations
China has revealed stronger-than-forecast trade figures for June, as demand for Chinese goods and for imports of key commodities jumped.
China’s exports ended the second quarter with the fastest pace of monthly growth since March, helping to push the country’s trade surplus to the second-highest level for 2017 in spite of the higher than expected growth in imports.
“Machinery electronics and high-tech products continued to be the main drivers for exports,” said Kelvin Lam, greater China economist at HSBC.
Exports rose 11.3% year on year in dollar terms in June, according to China’s General Administration of Customs, up from the 8.7% rate in May.
Import growth also rose 17.2% year-on-year on the back of solid demand for capital goods. That was above the 13.1% increase market forecast and up from the 14.8% rate in May.
That saw the trade surplus grow from $US40.81 billion to $US42.77 billion, marginally topping the $42.44 billion. Overall China recorded a trade surplus of $US188 billion in the same period, down 17.7% on year, according to the General Administration of Customs.
China’s trade surplus with the US was $US25.4 billion in June, up from $US22.0 billion in May, and the highest since October 2015, according to Reuters.
Exports to the US and EU grew by 19.9% and 15.2% from a year earlier, up from 11.7% and 9.7% in the May.
China publishes its second quarter economic growth numbers on Monday. Analysts think the economy cooled slightly to an annual rate of 6.8% in the June quarter from 6.9% in the first quarter.
Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.
At the AFR he was a finance writer, Finance Editor, News Editor and Chief of Staff. At the Nine Network he was supervising producer of Business Sunday for more than 16 years. He has also written for other online and analogue print publications here and overseas.