BEIJING (Reuters) – China’s exports likely fell in June as weakening global demand and a sharp hike in U.S. tariffs took a heavier toll on the world’s largest trading nation, a Reuters poll showed.
Imports are expected to have fallen for a second straight month, pointing to continued weakness in domestic demand and highlighting the need for Beijing to roll out more economic support measures.
Friday - Trade - Data - Line - Downbeat
If Friday’s trade data are in line with the downbeat forecasts or worse, it could spark concerns about a sharper-than-expected slowdown in China and the risk of a global recession.
Neighboring South Korea last week slashed its export forecasts and cut this year’s economic growth target to what would be a seven-year low as the U.S.-China trade war drags on, weighing on global demand.
China - June - Exports - Percent - Year
China’s June exports are expected to have declined 2 percent from a year earlier, according to the median estimate of 34 economists in a Reuters poll, compared with a 1.1% gain in May.
June marked the first full month of higher U.S. tariffs on $200 billion of Chinese goods, which were implemented weeks earlier.
Factory - Activity - Surveys - Export - Orders
Factory activity surveys showed export orders also shrank last month, pointing to further weakness in the third quarter.
Some analysts had attributed the unexpected rise in shipments in May to a rush by Chinese exporters to beat additional U.S. tariffs being threatened by Washington.
Month - United - States - China - Trade
Late last month, the United States and China agreed to restart trade talks after President Donald Trump offered concessions including no new tariffs and an easing of restrictions on tech company Huawei...
Wake Up To Breaking News!