- Commerzbank AG
China's exports unexpectedly declined in April as sluggish demand continued to weigh on the world's second-biggest economy. Exports dropped 1.8% in April from a year ago, reversing a recovery in March, according to the General Administration of Customs. Economists had predicted outbound shipments to decline by just 0.1% following a surprise 11.5% surge in March. At the same time, imports plunged 10.9% compared with the same month in 2015, marking the 18th straight monthly fall, indicating that domestic demand remains tepid despite an increase in infrastructure spending. Consequently, China's trade surplus widened more than expected last month to $45.56 billion from $29.86 billion in March. The data suggests more challenges loom for policy makers as global demand remains too sluggish to fuel a sustainable pickup in economic growth.
Economic growth in the world's second-biggest economy slowed to 6.7% in the first quarter of this year, marking the weakest figure since the financial crisis. Yet activity picked up in March as government measures to boost growth, including six interest rate cuts since late 2014, seemed to help. However, the April figures suggest that the rebound may not be sustained. Both official figures and a private-sector survey for April showed a mixed picture for China's manufacturing sector.
© Dukascopy Bank SA