China's exports slide as imports unexpectedly jump

According to official customs data, China’s exports fell 6.4% year-on-year in October following 6.2% slide in September. The decline was far steeper than forecasts for a fall of 3.5%.

Imports, however, rose by 3%, in contrast to September’s 6.3% fall and forecasts for a 4.8% decline. It was the first increase in imports for seven months.

As a result, China's trade surplus narrowed to $56.53bn from September’s upwardly revised $77.71bn.

Exports to the US fell by 9.3% and by 11.6% to the European Union. Exports to Association of Southeast Asian Nations countries, China’s largest trade partner, tumbled 15.1%.

Within sectors, auto exports strengthened but computer exports plunged 20.2%.

Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics, said: “The continued decline in Chinese exports points to a still-dull global demand. By contrast, Korean exports rebounded 5.1% in October, but this was on the back of firming chip prices, rather than stronger demand.

“Global demand is likely to remain sluggish going into 2024, given that China new export orders PMI has been under 50 for the past four months.”