China's Exports Fall 0.3%, Inflation Accelerates to 3.1%

Hiruki Nakamura
14 Oct, 2013
New York City

Trade surplus in September month declined as exports rose less than expected and imports surged on higher commodities prices and volumes. In addition, China said inflation picked up in September.

[R]5:00 PM Hong Kong – Trade surplus in September month declined as exports rose less than expected and imports surged on higher commodities prices and volumes. In addition, China said inflation picked up in September.[/R]

China reported a decline in exports in September. Overseas shipments declined 0.3% from a year ago to $185.2 billion and imports in the month rose 7.4% to $160 billion.

Trade surplus in September declined to $15.2 billion from $28.5 billion in August.

Exports increased 7.2% in August and in the latest month shipment to many regions in the world were lower than expected in the reported data.

Exports growth to the U.S. declined to 4.2% from 6.1% in August and exports to South Korea, Taiwan and the European Union declined from a year ago.

Exports to the EU declined 1% compared to 2.1% in August.

However, the data may have been distorted by the holiday calendar this year and the government crackdown on over invoicing and higher than normal currency volatility.

China also said its foreign reserves jumped to $3.66 trillion in September from $3.5 trillion in June, the central bank said.

Separately, statistics bureau said consumer price index increased 3.1% in September, faster than 2.6% in August. The government has target inflation in the range of 3.5%.

New loans increased to 787 billion renminbi or $129 billion. Money supply growth slowed to 14.2% and the broadest measure of credit aggregate financing decreased from a year ago to 1.4 trillion yen.