27955
China Sept. Imports Plunge  in New Sign of Weakness
World Economy

China Sept. Imports Plunge in New Sign of Weakness

China's imports fell by an unexpectedly wide margin in September in a new sign of weakness in the world's second-largest economy.
Imports plunged 20.4% from a year earlier to $145.2 billion, customs data showed Tuesday, worse than August's 5.5% decline and analysts' expectations of about 15%. Exports shrank 3.7%, though that was an improvement from the previous month's 13.8% decline, Associated Press reported.
Weakness in trade has fueled doubts Beijing can hit its economic growth target this year of about 7%.
Much of China's slowdown over the past five years was self-imposed as the ruling Communist Party tries to steer the economy to more self-sustaining growth based on domestic consumption instead of exports and investment. But the past year's unexpectedly deep decline has raised fears of politically dangerous job losses.
Beijing has cut interest rate five times since November and boosted spending on public works construction. Economic growth held steady in the quarter ending in July at 7%. But that was the lowest rate since the 2008 global crisis and analysts said a Chinese stock market boom that pushed up activity in financial industries concealed weakness in other sectors.
"Import growth appears to have come in weaker than expected," Julian Evans-Pritchard of Capital Economics said in a report.
"This suggests that domestic demand may have softened," though the decline partly reflects lower prices for imports, he said. "Import volumes are holding up much better."
IHS Global Insight economist Yating Xu noted that iron ore imports, a key input for manufacturing and construction, rose 1.7%, compared with a 1% contraction the previous month. Crude oil imports rose 1.4%, compared with August's 5.6% decline.
China's global trade surplus nearly doubled from a year earlier to a record-high $60.3 billion.
The country's trade surplus with the European Union was $14 billion and that with the United States $26.5 billion.
Communist leaders want to reduce reliance on exports, but their plans call for trade to hold steady to protect millions of manufacturing jobs.
For the first nine months of the year, exports were down 1.9% and imports by 15.3%. That makes it unlikely Beijing can meet its trade growth target of about 6% for the year.
The year-to-date decline in trade suggests "this sector is in recession," Citigroup economist Minggao Shen said in a report. "However, there is a better chance that we're probably near the trough level of growth and may expect better readings" in the current quarter.
Some analysts had suggested September trade would improve over August because that month's activity was disrupted by an explosion in Tianjin, one of China's busiest ports, and government-ordered factory shutdowns for a military parade in Beijing.

 

Short URL : https://goo.gl/PtfpbW
  1. https://goo.gl/ZZOlVI
  • https://goo.gl/elXXR1
  • https://goo.gl/1FyW0J
  • https://goo.gl/q1efjc
  • https://goo.gl/aU60rO

You can also read ...

Automation is eroding jobs.
As workers struggle with the uneven fruits of globalization...
Danish CCI Falls
Denmark’s consumer confidence weakened for the third straight...
Gold Hits Two-Week Low
Gold hit its lowest in over two weeks on Monday, as the dollar...
Kobe Steel Faces Key Debt Test
As Kobe Steel Ltd becomes increasingly embroiled in a data...
Taiwan Jobless Rate Down
The unemployment rate for Taiwan in September moved lower as...
The GDP growth rate would hover around 3% a year.
World Bank’s projection for Kazahstan’s 2017 growth has been...
Brazil Watchdog to Reject Oi Plan
Brazil’s telecoms regulator Anatel on Monday is set to reject...
Pedestrians are reflected on a window displaying share prices of the Tokyo Stock Exchange in Tokyo on October 23, 2017.
Asian stocks ended broadly higher on Monday after the US...

Trending

Googleplus