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China trade continues its slide in October

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China trade continues its slide in October

Both imports and exports fall beyond expectations.

China’s General Administration of Customs announced today that exports in the month of October fell 6.9%, while imports fell 18.8% during the month.  It was the fourth consecutive drop in exports from the world’s second-largest economy and the world’s largest export economy.

Reacting the to the news, Chris Beauchamp, senior market analyst at IG, was quoted by Reuters as saying “China data pointed to a further slowdown, but with the full effect of rate cuts yet to be felt, there is some reason to hope that this performance may be reversed in the coming months.”

The weak results indicate a slowing Chinese economy.

Analysts had expected China’s exports to fall only 3.8% in October, while expectations for imports during the month were for a 15% drop.

Exports to the US fell 0.9% according to the report, while exports to Japan fell 7.7%.

The weak results indicate a slowing Chinese economy, as well as a general weakening of demand globally, a view supported by the recent downward revision in global growth expectations by the Organisation for Economic Cooperation and Development.  The OECD announced that its forecast for 2015 global growth is now 2.9%, a decline from the 3.0% forecast issued in September and the 3.1% forecast issued in June.

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