Gloomy China’s July imports suggest slumping domestic demand
In July, China’s imports and exports sagged more than expected in a rocky start to the third quarter, thus indicating further weakness in global demand in the aftermath of the UK’s shocking decision to abandon the European Union.
Imports dipped approximately 12.5% from a year earlier, the greatest sink since February and suggesting China's domestic demand might be faltering notwithstanding a flurry of measures to spur economic growth.
Financial experts are assured that the given dip in imports has been mostly caused by the demand side.
Government attempts to reduce overcapacity could generate an even greater hit to demand in the next few quarters.
Exports descended 4.4% on-year, as the General Administration of Customs informed on Monday. Aside from that, pressure on shipments is expected to start easing in October.
It resulted in a trade surplus of about $52.31 billion in July, the most impressive since January, versus June's reading of $48.11 billion.