China exports drop for 7th straight month in October

 AFP, BEIJING: Chinese exports sank for a seventh consecutive month in October, data showed yesterday, as weak global demand dealt a blow to the world's number two economy following recent signs of stability.
The result, which missed forecasts, comes as the country's export-oriented companies see their margins squeezed by rising labour costs and increasing competition from southeastern Asian countries, despite a falling yuan currency.
Overseas shipments fell 7.3 per cent year-on-year, while imports also dropped 1.4 per cent, with both coming in below expectations in a survey of economists by Bloomberg News.
China is the world's biggest trader in goods and its performance affects partners from Australia to Zambia, which have been battered as its expansion has slowed to levels not seen in a quarter of a century.
With exports totalling $178.2 billion and imports $129.1 billion the trade surplus dropped to $49.1 billion in October.
Customs earlier gave the figure in yuan terms, showing a 3.2 per cent drop in exports and a 3.2 per cent increase in imports on-year.
Analyst Julian Evans-Pritchard of Capital Economics said the outlook appeared challenging with "global and domestic growth unlikely to accelerate much further".
"The current pace of global growth is likely to be as good as it gets for the foreseeable future."
Election overshadows
Though the yuan currency's value has slid to a series of six-year lows against the greenback in recent weeks, making Chinese goods cheaper for trade partners, it has not been enough to lift exports into positive territory.
The yuan weakened further yesterday after the People's Bank of China said the country's foreign exchange reserves dropped nearly $46 billion in October, their second-largest decline this year as capital outflows eat into the world's largest stockpile. While Tuesday's trade figures disappointed, analysts with ANZ said they suggested that external demand had "not worsened significantly" despite earlier data on factory activity that pointed to a larger decline.
Beijing is seeking to transition the economy away from being the world's factory floor for cheap goods to supplying the country's growing consumer needs.
"Trade's contribution to China's economy is now diminishing as the economy increasingly depends on domestic demand," Zhu Qibing, chief macro economy analyst at BOCI International in Beijing told Bloomberg.

China exports drop for 7th straight month in October

AFP, BEIJING: Chinese exports sank for a seventh consecutive month in October, data showed yesterday, as weak global demand dealt a blow to the worlds number two economy following recent signs of stability. The result, which missed forecasts, comes as the countrys export-oriented companies see their margins squeezed by rising labour costs and increasing competition from southeastern Asian countries, despite a falling yuan currency. Overseas shipments fell 7.3 per cent year-on-year, while imports also dropped 1.4 per cent, with both coming in below expectations in a survey of economists by Bloomberg News. China is the worlds biggest trader in goods and its performance affects partners from Australia to Zambia, which have been battered as its expansion has slowed to levels not seen in a quarter of a century. With exports totalling $178.2 billion and imports $129.1 billion the trade surplus dropped to $49.1 billion in October. Customs earlier gave the figure in yuan terms, showing a 3.2 per cent drop in exports and a 3.2 per cent increase in imports on-year. Analyst Julian Evans-Pritchard of Capital Economics said the outlook appeared challenging with global and domestic growth unlikely to accelerate much further. The current pace of global growth is likely to be as good as it gets for the foreseeable future. Election overshadows Though the yuan currencys value has slid to a series of six-year lows against the greenback in recent weeks, making Chinese goods cheaper for trade partners, it has not been enough to lift exports into positive territory. The yuan weakened further yesterday after the Peoples Bank of China said the countrys foreign exchange reserves dropped nearly $46 billion in October, their second-largest decline this year as capital outflows eat into the worlds largest stockpile. While Tuesdays trade figures disappointed, analysts with ANZ said they suggested that external demand had not worsened significantly despite earlier data on factory activity that pointed to a larger decline. Beijing is seeking to transition the economy away from being the worlds factory floor for cheap goods to supplying the countrys growing consumer needs. Trades contribution to Chinas economy is now diminishing as the economy increasingly depends on domestic demand, Zhu Qibing, chief macro economy analyst at BOCI International in Beijing told Bloomberg.