FX.co ★ China Trade Surplus Smallest in 8 Months

In October, China's trade surplus stood at USD 90.07 billion, falling short of the anticipated USD 95.6 billion and also below the USD 95.72 billion recorded in October of the previous year. This marks the smallest trade surplus since February, attributed to an unexpected decline in exports coupled with a rise in imports. Exports decreased by 1.1% compared to the previous year, missing predictions for a 3% increase and a sharp contrast to the 8.3% rise seen in September. Meanwhile, imports grew by 1.0%, not meeting the expected 3.2% increase and significantly lower than the 7.4% growth in September, highlighting the weakest import growth since May, a month that saw purchases fall by 3.4% due to subdued domestic demand. Cumulatively for the year, China reported a total trade surplus of USD 964.8 billion, with exports and imports declining by 7.0% and 9.5%, respectively.