China October trade data points to challenging outlook, economists say

Chinese exports shrank at a slower pace in October but continued to point towards challenges ahead on the foreign trade front for the country.

Exports from Asia's largest economy fell at a 7.3% year-on-year pace, less than the 10% fall observed in the month before.

Nonetheless, that was worse than the 5.8% slide which economists had forecast, and came despite the strong overseas sales seen in South Korea and Taiwan during the same month, as well as the rise in Markit's global purchasing managers' index to a two-year high, Julian Evans-Pritchard at Capital Economics said in a research note sent to clients.

The latter had pointed towards improvement in all of China's key trading partners, Evans-Pritchard added.

There was also limited scope for a more significant recovery in global demand, he said.

News was more positive on the imports front, with foreign purchases dropping 1.4% versus a year ago after dropping 1.9% in September (consensus: 1.5%).

Nonetheless, while the continuing cyclical rebound in the Chinese economy should should support imports for another quarter or two "the boost to growth from policy easing is set to fade before long", the think-tank concluded.