China import growth unexpectedly dips in July

Chinese exports printed well ahead of economists' forecasts again in July but import growth dipped, stoking some concern about the pace of the domestic recovery in China.

According to trade customs data, in US dollar terms, the year-on-year rate of growth in Chinese exports picked up from 0.5% for June to 7.2% in July (consensus: -0.5%).

Martin Rasmussen at Capital Economics attributed much of the strength in the figures to overseas demand for Covid-19 related equipment which he expected to fade.

Import growth meanwhile slipped from 2.7% to -1.4% (consensus: 0.9%).

Nevertheless, upon seasonal adjustment and in volume terms, imports were 1.0% higher last month, Rasmussen pointed out, consistent with the ongoing recovery in domestic demand.

Indeed, the continued acceleration in credit growth and stimulus put in place by Beijing both bode well for the recovery in coming months, he added.

Export growth meanwhile should be supported by easing lockdown restrictions globally.