Chinese exports likely to have dropped in June, import growth to narrow amidst subdued domestic demand
Source: FxWire Pro - Commentary / 11 Jul 2019 16:24:13 America/New_York
China’s foreign trade data for the month of June is set to release tomorrow. According to a DBS Bank research report, exports and imports are likely to have dropped 4.5 percent year-on-year in June, from advancement of 1.1 percent and decline of 8.5 percent in May, respectively.
Exports are expected to continue to fall because of existing tariff. Import growth is likely to narrow in the midst of a softening domestic demand. Early indicators, NBS manufacturing PMI, continued to be in the contraction zone. The new export orders and imports component of the PMI dropped to 46.3 and 46.8 in June.
“Looking ahead, we remain cautious of the trade performance of China due to a moderating global demand and the on-going trade talk between China and the US”, added DBS Bank.
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