China trade data for July, the surplus coming in well under expectations, with a very sharp drop in exports on the month
China trade balance for July: $43.03bn surplus
- expected $55.00bn, prior was $46.54bn
Exports -8.3% y/y, a very sharp drop from the previous month's reading, and well below expectations
- expected -1.5%, prior was +2.8%
Imports -8.1% y/y
- expected -7.9%, prior was -6.1%
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In yuan terms ...
Trade balance surplus for July of 263bn yuan
- expected 353.11bn, prior was 284.20bn
Exports -8.9% % y/y
- expected is -0.3%, prior was +2.1%
Imports -8.6% y/y
- expected is -6.6%, prior was -6.7%
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The decline in exports will add to calls for action by the authorities to act to stabilise growth. If the issue is weak global demand, though, the challenge for China to reach its 7% growth target will be more difficult than just domestic initiatives.
