|
Data for July are expected to show a 12.5% fall in outbound
shipments from a year earlier, following a drop of 12.4% in
June, according to the median forecast of 28 economists in the
poll.
That would be the worst reading since the early days of the
pandemic in February 2020, when exports fell an annual 17.2%, as
strict COVID curbs and lockdowns across the country resulted in
workers laying down their tools.
Chinese factory activity fell for a fourth straight month in
July, threatening growth prospects for the third quarter and
increasing pressure on officials to deliver promised policy
measures to boost domestic demand, with the services and
construction sectors teetering on the brink of contraction.
China's state planner hinted of stimulus over three press
conferences convened last week, but investors were underwhelmed
by proposals to expand consumption in the automobile, real
estate and services sectors as well as extend loan support tools
for small and medium-sized enterprises until the end of 2024.
As many of China's major markets grapple with higher borrowing
costs amid a battle to bring down soaring inflation, authorities
in Beijing are walking a tight rope in trying to boost domestic
consumption without easing monetary policy too much lest it
triggers large capital outflows.
Imports are expected to have shrunk by 5.0%, after a fall of
6.8% in June, reflecting slightly improved domestic demand.
But South Korean exports to China, a leading indicator for
imports to the Asian giant dropped 25.1% in July from a year
earlier, the sharpest in three months.
The median estimate in the poll indicated only marginal change
in China's trade surplus, with analysts predicting it will come
in at $70.60 billion, compared with 70.62 billion in June.
China's trade data will be released on Tuesday.
(Reporting by Joe Cash; Polling by Anant Chandak and Susobhan
Sarkar in Bengaluru; Editing by Shri Navaratnam)
[© 2023 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
