Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

China's export, import growth seen moderating in July: Reuters poll

Economic Indicators Aug 06, 2021 04:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A cargo ship carrying containers is seen near the Yantian port in Shenzhen, following the novel coronavirus disease (COVID-19) outbreak, Guangdong province, China May 17, 2020. REUTERS/Martin Pollard/File Photo
 
GS
+0.68%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

BEIJING (Reuters) - China's robust export growth likely moderated in July amid an acceleration in COVID-19 cases globally and continuing severe pressure on global supply chains, a Reuters poll showed on Friday.

Although there are signs China's strong industrial recovery in the first half of the year may be losing some momentum, overseas demand has remained strong in recent months even as factories in many countries return from lockdowns.

Headline trade numbers are also being helped by the statistical base effects when compared with sharp declines a year ago.

Exports are expected to have risen 20.8% in July from a year earlier, according to the median forecast in a Reuters poll of 21 economists, compared with a 32.2% gain in June.

Imports likely rose 33.0% last month year-on-year, the poll showed, compared to 36.7% growth in May. Despite China's attempts to cool surging raw materials prices, commodity prices remain elevated.

Exports grew much faster than expected in June, as solid global demand led by easing lockdowns and vaccination drives eclipsed fresh virus outbreaks and port delays.

But overall trade growth in the world's second-biggest economy may slow in the second half of 2021, a customs official warned last month.

"Export growth has likely slowed further in July both in year-over-year and month-over-month terms...Korea also reported weaker growth of imports from China. A typhoon around Yangtze River Delta might have also reduced total trade growth in the month due to port disruptions," said analysts from Goldman Sachs (NYSE:GS) in a note.

Exporters are grappling with higher freight costs and lingering logistics bottlenecks.

The acceleration in Delta-variant coronavirus outbreaks in several countries, coupled with natural disasters, has put huge pressure on global supply chains and slowed global container turnaround times.

Container shipping rates from China to the United States have scaled fresh highs above $20,000 per 40-foot box amid rising retailer orders ahead of the peak year-end U.S. shopping season.

China reported on Friday its highest daily count for new coronavirus cases in its current outbreak at 124, fuelled by a surge in locally transmitted infections in a growing number of cities.

"The next two weeks would be critical to see whether (China is) still effective in dealing with the Delta variant. In any case, consumption, especially summer tourism, is under heavy pressure," Larry Hu from Macquarie Capital Limited said in a note.

China's factory activity expanded in July at the slowest pace in 17 months as higher raw material costs, equipment maintenance and extreme weather weighed on business activity, adding to concerns about a slowdown in the world's second-biggest economy.

The trade surplus is expected to be $51.54 billion in July, from $51.53 billion in June, the poll showed. The data will be released on Saturday.

China's export, import growth seen moderating in July: Reuters poll
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email