Post by Hera on Oct 12, 2013 9:24:56 GMT -7
China’s exports unexpectedly fell in September, signaling constraints from global demand and highlighting distortions from fake invoices that have yet to be eliminated from trade data.
Overseas shipments dropped 0.3 percent from a year earlier, the General Administration of Customs said yesterday in Beijing, trailing all 46 estimates in a Bloomberg News survey that had a median projection for a 5.5 percent gain. The trade slowdown resulted from a high basis of comparison with last year, the agency said in a statement.
The report may add to Premier Li Keqiang’s challenges in defending the government’s 7.5 percent expansion goal for this year. The International Monetary Fund cut its global growth outlook last week as capital outflows further weaken emerging markets and warned that a U.S. government default could “seriously damage” the world economy.
“It’s all quite murky,” said Shen Jianguang, Hong Kong-based chief Asia economist at Mizuho Securities Asia Ltd., citing the impact of inflated export data that started late last year, fewer working days due to the timing of the Mid-Autumn Festival holiday and currency volatility in Southeast Asia.
“There has been an export recovery since July to the U.S. and Europe but it’s been pretty weak,” Shen said. “The driving force for China’s recovery at this stage is still housing and infrastructure investment.”
Overseas shipments dropped 0.3 percent from a year earlier, the General Administration of Customs said yesterday in Beijing, trailing all 46 estimates in a Bloomberg News survey that had a median projection for a 5.5 percent gain. The trade slowdown resulted from a high basis of comparison with last year, the agency said in a statement.
The report may add to Premier Li Keqiang’s challenges in defending the government’s 7.5 percent expansion goal for this year. The International Monetary Fund cut its global growth outlook last week as capital outflows further weaken emerging markets and warned that a U.S. government default could “seriously damage” the world economy.
“It’s all quite murky,” said Shen Jianguang, Hong Kong-based chief Asia economist at Mizuho Securities Asia Ltd., citing the impact of inflated export data that started late last year, fewer working days due to the timing of the Mid-Autumn Festival holiday and currency volatility in Southeast Asia.
“There has been an export recovery since July to the U.S. and Europe but it’s been pretty weak,” Shen said. “The driving force for China’s recovery at this stage is still housing and infrastructure investment.”