China39;s June exports top forecasts, imports fall
Import data underlines weak domestic demand concerns
Orders frontloaded ahead of expected tariffs, analysts say
Economists expect fiscal stimulus to help boost domestic demand
BEIJING, July 12 Reuters China39;s exports grew at their fastest in fifteen months in June, suggesting manufacturers are frontloading orders ahead of tariffs expected from a growing number of trade partners, while imports unexpectedly shrank amid weak domestic demand.
The mixed trade data keeps alive calls for further government stimulus as the 18.6 trillion economy struggles to get back on its feet. Analysts warn that the jury is still out on whether strong export sales in recent months can be sustained given major trade partners are becoming more protective.
This reflects the economic condition in China, with weak domestic demand and strong production capacity relying on exports, said Zhiwei Zhang, chief economist at Pinpoint Asset Management.
The sustainability of strong exports is a major risk for China39;s economy in the second half of the year. The economy in the U.S. is weakening. Trade conflicts are getting worse.
Outbound shipments from the world39;s secondbiggest economy grew 8.6 yearonyear in value in June, customs data showed on Friday, beating a forecast 8.0 increase in a Reuters poll of economists and a 7.6 rise in May.
But imports hit a fourmonth low, shrinking 2.3 compared with a forecast 2.8 increase and a 1.8 rise the…