China export and import growth slows further

14th Oct 2024 07:21

(Sharecast News) - China's exports and imports grew significantly less than expected in September, according to fresh data released on Monday.

According to China's customs agency, dollar-denominated exports rose 2.4% year-on-year, while imports edged up by just 0.3%.

The figures were well below forecasts, with analysts surveyed by Reuters having anticipated export growth of 6% and an increase in imports of 0.9%.

Exports - a key driver of China's economic recovery - had slowed sharply in recent months, after they rose 8.7% in August.

Meanwhile, weak domestic demand was weighing on the economy, exacerbated by low consumer spending and an ongoing property market slump.

Additional signs of economic fragility came from inflation data on Sunday, which showed that China's core consumer price index, which excludes food and energy prices, increased by just 0.1% year-on-year in September - the slowest pace since February 2021.

Tourism-related prices also fell by 2.1%, despite the Mid-Autumn Festival and the Golden Week holiday.

Beijing authorities had increased stimulus measures in recent weeks in response to the economic slowdown, though details on financial policy had been limited, leaving investors uncertain about their potential impact.

Looking ahead, the release of third-quarter GDP figures, as well as retail sales, industrial production, and fixed asset investment data later in the week, would provide further insight into the health of China's economy.

Reporting by Josh White for Sharecast.com.