China’s October exports exceed expectations, Reuters offers buffoon to slow domestic economy

BEIJING (Reuters) – China’s export growth slowed in October, but exceeded expectations as global holiday demand, easing power cuts and easing the supply chain disruption offset some of the pressures on the world’s second-largest economy.

Imports, however, lost analysts ’expectations, likely indicating a general weakness in domestic demand.

Outgoing shipments rose 27.1% from a year earlier in October, slower than the 28.1% gain in September. Analysts surveyed by Reuters forecast that growth would fall to 24.5%.

Zhiwei Zhang, chief economist at Pinpoint Asset Management, said strong exports would help alleviate the weakening domestic economy and give the government more opportunities to maneuver economic policy.

“The government can wait until the end of the year to release monetary and fiscal policies, as exports now provide a buffer to soften the economic slowdown,” he said.

Recent data indicate a slowdown in manufacturing. Factory activity fell for the second month in October, an official survey showed, while industrial production growth fell from March to the lowest – the first wave of the pandemic.

However, as a result of harsh government intervention, some supply cuts have begun to ease in recent weeks. Power cuts – due to coal shortages, tougher emission standards and strong industrial demand – have begun to ease after tough government intervention.

Premier Li Keqiang said on Tuesday that the Chinese government will take steps to help the industrial sector in the face of new downward pressure on the economy.

Imports rose by 20.6% in October from a year earlier, accelerating from a 17.6% rise in September but losing expectations for a 25% rise.

China’s imports plunged in October to September 2018, and coal imports slowed as domestic production rose. Purchases of iron ore fell for the second month as demand eased.

China had a surplus of $ 84.54 billion last month, above the forecast of $ 65.55 billion forecast and a surplus of $ 66.7 billion in September.

The country’s economy grew by 4.9% in the July-September quarter a year earlier, the weakest reading since the third quarter of last year.

China’s trade surplus with the United States was $ 40.75 billion in October, Reuters estimates based on customs data, showing less than $ 42 billion in September.

U.S. Trade Representative Katherine Tai last month pledged to exclude some Chinese imports from tariffs because she was pressuring Beijing for failing to fulfill some of the promises made in the “Phase 1” trade deal under Trump’s administration.