China's exports return to growth with 5.6% rise
Renewed strength in China's export-driven manufacturing sector is the latest indicator that its economy is bouncing back.
HONG KONG – China’s exports returned to growth in October while imports accelerated, government figures showed, further evidence of a gradual recovery in the world’s No. 2 economy.
Exports rose 5.6% to $185.4 billion last month compared with the year-ago period, according to customs data.
The growth will help relieve worries of an unsteady Chinese economic recovery after exports in the previous month declined unexpectedly by 0.3% on weaker global demand.
Imports expanded 7.6% to $154.3 billion last month, up from 7.4% growth in September.
China’s politically sensitive trade surplus ballooned to $31.1 billion from $15.2 billion the previous month.
Renewed strength in China’s massive export-driven manufacturing sector is the latest indicator that China’s economy is bouncing back.
Economic growth rebounded to 7.8% in the latest quarter after hitting a two-decade low.
Healthy demand from abroad for shipments of Chinese goods will ease pressure on the country’s communist leaders to provide economic stimulus to prevent job losses in the manufacturing sector, allowing them to focus on their stated goal of shifting growth to more sustainable sources based domestic consumption.
“China’s export numbers suggests some – although not yet decisive – improvement in global demand momentum,” RBS chief China economist Louis Kuijs wrote in a research note. “We expect actual export growth to rise in the coming quarters, reflecting a gradual economic upturn in the US and Europe.”
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