Chinese exports unexpectedly contracted in October, a key sign of the sharp contraction in global trade as aggressive anti-inflation moves by central banks force consumers and businesses to cut spending.
Exports from China fell 0.3% in October from the previous year, the general customs administration said Monday. It was the worst performance since May 2020, when countries’ initial efforts to contain the escalating global Covid-19 epidemic hampered trade. China’s October export data was well below the 4% year-on-year increase forecast by economists interviewed by the Wall Street Journal.
The decline in exports from China, the world factory, has added to the gloom looming over the global economy. The US job market is showing signs of cooling as the Federal Reserve raises interest rates to tame high inflation. Europe faces a harsh winter after Russia decides to cut energy supplies in response to sanctions over the war in Ukraine.
Data released Monday showed that Chinese exports to the US fell 13% in October from the previous year, the third consecutive month of decline; Chinese exports to the European Union fell by 9% in October.
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