In June, China’s imports saw a decline of 2.3% from the previous year, which was unexpected as there were expectations for slight growth. This contrasted sharply with the forecasted 2.8% growth. On the other hand, exports showed a stronger performance than anticipated, with a growth of 8.6% year on year. This exceeded the 8% growth forecasted by a Reuters poll. These figures indicate a mixed performance in China’s trade sector for the month of June.
The data also revealed that year-to-date imports had increased by 2% and exports by 3.6% in the first half of the year compared to the same period last year. This suggests a slightly more positive trend in the overall trade performance of China so far this year. In May, China’s exports had risen by 7.6% in U.S. dollar terms, while imports had only seen a growth of 1.8%. This disparity in growth rates between imports and exports reflects the ongoing challenges in stimulating domestic demand in China.
In terms of inflation, China’s consumer prices rose by 0.2% in June, falling short of expectations. Meanwhile, producer prices met expectations during the same period. The core Consumer Price Index (CPI), which excludes volatile food and energy prices, increased by 0.6% year on year in June, slightly slower than the 0.7% growth in the first half of the year. These inflation figures indicate a relatively stable price environment in China.
Looking ahead, China’s National Bureau of Statistics is set to release the second-quarter gross domestic product figures and economic indicators for June on Monday. These upcoming data releases will provide further insights into the overall economic performance of China in the second quarter of the year. It will be important to monitor these updates to gauge the trajectory of China’s economy amid ongoing global uncertainties.