China’s exports and imports fell more than expected in July, adding to concerns that economic growth in the world’s second-largest economy is slowing fast.
Exports slumped by 14.5% from last year, the largest fall since the outset of the coronavirus pandemic in February 2020, while imports slipped 12.4%.
Economists had forecast a 12.5% decline in exports and a 5% fall in imports.
China’s crude oil, copper and iron ore imports all softened as economic and industrial activity slowed.
“The imports data was pretty bad,” said Julian Evans-Pritchard, head of China economics at Capital Economics. “On our estimates, pretty much all the recovery in import volumes since the start of the year was unwound in July, which is concerning, to say the least, and suggests the domestic picture was weakening quite rapidly in the last month or two.”
Commentators felt the dire data might spur Chinese authorities into launching a stimulus package for the economy.
Michael Hewson at CMC Markets said: “With numbers this poor it surely can’t be too long before Chinese policymakers take further steps to support their economy with further easing measures, however, there appears to be some reluctance to do so at any scale for the moment, due to concerns over capital outflows.”
The figures prompted a fall in the oil price with Brent crude down 1.5% to $84.03/barrel.