China’s exports grew more than expected last month and imports jumped sharply, surprising economists who had been looking for a softer performance.
Exports grew 8.7% year on year in dollar terms in May, according to China’s General Administration of Customs, picking up from April’s rise of 8% and coming in well above a median forecast of 7% from economists polled by Reuters.
Imports jumped 14.8% year on year, accelerating from a 11.9% rise in April and easily topping forecasts for a rise of 8.5%.
May trade flows shook out to a trade surplus of $US40.8 billion, up from a revised $US38 billion in April (previously $US38.1 billion) and falling well short of a median estimate of $US47.8 billion.
In reminbi terms exports grew 15.5% year on year in May, while imports rose 22.1% for a trade surplus of Rmb281.6 billion. China’s trade surplus with US rose 4% to $US22.0 billion in May, up from $US21.34 billion in April.
Exports to the United States rose 11.7% in May from a year earlier while imports from the US rose 27.1%.
The surplus with the 28-nation European Union, China’s biggest trading partner, rose 8% to $US10.8 billion ($A14.3 billion).
Imports have been strong in recent months, driven largely by iron ore and other commodities used to feed a year-long construction boom, while exports have rebounded thanks to stronger global demand after several years of contraction.
China’s foreign exchange stockpile expanded for the fourth month in a row in May after capital flight pressure eased and the value of the renminbi strengthened.
The forex reserves stood at $US3.05 trillion at the end of May, an increase of $US24 billion from the end of April, the State Administration of Foreign Exchange (SAFE) said.
Seeing the country ran a trade surplus of $US40 billion in May, there was a leakage of at least $US16 billion in May.
