Both China’s imports and exports fell in July and strongly indicated a slowly diminishing appetite for global products. The result follows increased global uncertainty following the BREXIT, Europe being Chinas second biggest export partner, first being the US.
Imports fell a staggering 12.5% Year on year, the most significant decline since Feb, Exports declined 4.4%. Collectively that equated to a trade surplus of $52.31 Billion in July, the biggest since January.
Imports to China have now dwindled consecutively for the last 21 months, while exports have not fared much better having dropped 12 of the last 13 months.
Julys exports and imports had been anticipated to slow and it is expected further BREXIT worries will burden the trade balance further.
Chinas economy grew 6.7% mid-way through the year so data has been mixed following positive outcome in infrastructure development but negative results in the manufacturing sector.
Incredibly the AUD who counts China as its largest trade partner only wobbled against USD and remained range bound. Naturally, this will serve as a polite warning for Australia to diversify as planned and move away from the iron ore industry.
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