China’s exports in October declined for the first time in nearly two years due to a high base effect and as businesses’ front-loading momentum tapered off ahead of meeting between U.S. and Chinese leaders.
Outbound shipments dropped 1.1% in October in U.S. dollar terms from a year earlier — their first contraction since March 2024, when exports shrank by a staggering 7.5%.
Exports decline was unexpected as economists had anticipated a 3% growth, according to a Reuters survey, and compared with a six-month high growth of 8.3% in September.
Imports rose 1% last month, missing the estimates for 3.2% growth, as a prolonged housing market downturn and weak job market conditions continued to weigh on consumer demand. They had jumped 7.4% in September.
“It seems the frontloading finally faded in October,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, expecting China’s exports to normalize as trade curbs have been put on hold for one year.
