China trade data was released on the weekend
- Imports +0.3% y/y vs -1.4% expected (prior -6.2%)
- Exports -1.1% y/y vs +0.8% expected (prior -0.8%)
- Trade balance +$38.73B vs +$44.50B expected
Exports were down for the fourth consecutive month in year-over-year terms but imports rose for the first time since April.
I believe Chinese imports are one of the world's best leading indicators because they're often tied to raw materials that are finished and then exported abroad. Purchasing managers only ramp up imports when they see demand globally.
This is a tiny rise in imports, so it's way too early to draw any conclusions but but the Caixin and official China PMIs both beat expectations in the latest month.
