Chinese trade surplus narrows as exports unexpectedly fall.


China's trade surplus narrowed last month to its lowest level since February after exports unexpectedly fell, pulling back after a big gain in September.

Source: Sharecast

In US dollar terms, the trade balance eased to $90.07bn in October from $90.45bn the month before, according to the National Bureau of Statistics, surprising economists who had pencilled in an increase to $95.60bn.

Exports were 1.1% lower than last October at $305.4bn, following an 8.3% year-on-year increase in September. This was well below the consensus forecast for a 3.0% increase.

The drop in exports, the first decline since February, was thought to be partly attributable to fewer working days linked to the Golden Week national holiday, along with tailwinds related to the introduction of new US trade tariffs earlier in the year.

Meanwhile, imports rose by just 1.0% year-on-year to $215.3bn, marking the lowest rate of growth since May. That followed a 7.4% jump in September and came in well below the 3.2% market forecast.

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