According to a Reuters survey, China’s imports are expected to contract in May, while exports are also expected to decline. China’s inbound cargo volume is expected to fall 8.0 per cent from a year earlier, following a 7.9 per cent drop in April, according to the median forecast completed by 26 economists. Exports are expected to contract 0.4 per cent from a year earlier, although they grew 8.5 per cent in April, but generally reflect weak global demand for Chinese goods, in line with poor imports. Specific trade figures will be released on Wednesday.
China’s factory activity contracted more quickly than expected in May as global demand weakened, according to the official manufacturing purchasing managers’ index (PMI) on Wednesday, but a private sector survey released on Thursday unexpectedly turned to growth. A sub-index of the official PMI showed factory output turning from expansion to contraction in May, while new orders, which include new exports, have fallen for two consecutive months.
China’s economy grew faster than expected in the first quarter thanks to the expansion of a robust services sector, but factory output lagged amid persistent weakness in global growth. Analysts are now cutting their forecasts for the Chinese economy, with Nomura Holdings and Barclays Bank both cutting their GDP growth forecasts for China through 2023.
Post time: Jun-06-2023