China’s September trade data were rather poor. In particular, imports dropped -8.5% yoy versus expectation of -5.2% yoy,. suggesting weak domestic demand. Exports also contracted -3.2% yoy versus expectation of -3.0% yoy. Trade surplus widened to USD 39.7B. But year-to September, exports just dropped -0.1% yoy while imports dropped -5.0% yoy.
In USD term, in September:
- Total trade dropped -5.7% yoy to USD 396.6B.
- Exports dropped -3.2% yoy to USD 218.1B.
- Imports dropped -8.5% yoy to USD 178.5B.
- Trade surplus came in at USD 39.7B.
Year-to-September:
- Total trade dropped -2.4% yoy to USD 3351.8B.
- Exports dropped -0.1% yoy to USD 1825.1B.
- Imports dropped -5.0% yoy to USD 1526.7B.
- Trade surplus was at USD 298.4B.
With US, Year-to-September:
- Total trade dropped -14.8% yoy to USD 402.7B.
- Exports to US dropped -10.7% yoy to USD 312.0B.
- Imports from US dropped -26.4% yoy to USD 90.7B.
- Trade surplus was at USD 221.3B.
With EU, Year-to September:
- Total trade rose 3.2% yoy to USD 522.5B.
- Exports rose 5.1% yoy to USD 316.8B.
- Imports rose 0.3% yoy to USD 205.8B.
- Trade surplus was at USD 111.0B
France PMI manufacturing revised down to 52.3, slower momentum, higher costs
France PMI manufacturing was revised lower to 52.3, down from 53.1, in June. Markit noted slower rates of output and new business growth in France. Though, pace of job creation was resilient. Input cost inflation also reached four-month high.
Tim Moore, Associate Director at IHS Markit, which compiles the France Manufacturing PMI® survey, said:
“June data revealed that manufacturing growth continued to lose momentum in France, with overall business conditions improving at the slowest pace for almost a year-and-a-half. It seems that the source of the slowdown in production growth has shifted from capacity constraints and supply chain bottlenecks to a general soft patch for new order books. Export sales increased only marginally in June, which contributed to the weakest upturn in total new work since the autumn of 2016.
“Most worryingly, the latest slowdown in new business growth was accompanied by a sharp and accelerated rise in manufacturing input costs. Survey respondents widely commented on increased prices for steel and aluminium. Operating margins remained under pressure, although the rate of output price inflation picked up from the eight-month low seen in May.”
Full France PMI Manfacturing release.