China’s trade figures for September revealed a continued, albeit moderating, decline in exports, marking the fifth consecutive month of contraction. Exports dropped by -6.2% yoy to USD 229.1B, an improvement from the -8.8% yoy decline recorded in the previous month. Despite this easing contraction, prolonged declines in shipments to major trade partners underscore the persisting challenges in the external sector.
A breakdown of the data shows exports to ASEAN countries contracted by -15.8% yoy, hitting USD 55B. The US, amidst a 14-month streak of declines, saw a -9.3% yoy contraction in goods from China, totaling USD 46B. European Union imports from China also fell by -11.6% yoy. In contrast, Russia exhibited a robust appetite for Chinese goods, with exports soaring by 20.6% yoy.
On the import front, China’s inbound shipments contracted by -6.2% yoy to USD 221.4B, marking the seventh consecutive monthly decline but showing a slower pace compared to August’s -7.3% yoy contraction. Consequently, trade surplus widened to USD 77.7B, outperforming market expectations.
Inflation dynamics within the country presented another layer of economic intricacies. China’s CPI stagnated at 0.0% yoy in September, pulled down by a -3.2% yoy decline in food prices, and falling short of the anticipated 0.2% yoy increase. The National Bureau of Statistics cited a high base of comparison with last year and abundant food supply ahead of the Golden Week holiday as key factors behind the subdued inflation.
Simultaneously, PPI showed a -2.5% yoy decline, extending the 12-month streak of contraction yet revealing an easing trend from August’s -3.0% yoy drop.
