CIYMI, trade data from China for September was not positive.
- export growth significantly slowed in September, while imports also decelerated, missing forecasts. This suggests manufacturers are reducing prices to clear inventory ahead of tariffs from key trade partners.
- Export growth, previously a strong point for China's economy, is losing momentum. This is adding to weak domestic demand and a property market debt crisis, highlighting the need for stronger economic stimulus.
- In September, exports grew 2.4% year-on-year, the slowest since April, well below the expected 6% increase. Prior was 8.7%.
- Imports grew only 0.3%, missing the 0.9% forecast. Prior was +0.5%.
- China's trade surplus shrank to $81.71 billion from $91.02 billion in August.
- Growing trade barriers, particularly from the EU, U.S., and Canada, are expected to further constrain China's export growth.
Stimulus efforts continue:
