Bankinter: China’s Trade Balance widened its surplus in May, to $103.22 billion versus an estimated $101.1 billion and $96.18 billion previously.
Bankinter analysis team’s view: The CPI has contracted for the fourth consecutive month and reflects the weakening of consumption. In the industrial sector the situation is even more complicated. Industrial Prices have remained negative since October 2022. On the other hand, the Trade Balance shows an increase of the surplus in May, but its composition is another sign of the weakness of the domestic demand. Imports fall 3.4% (versus 0.8% estimated and 0.2% previous) while Exports grow 4.8% (versus 6.0% estimated and 8.1% previous). The breakdown reflects that Exports to the US fell 34.4%, the lowest level since February 2020 despite the pause in the imposition of tariffs, while they increased 11.0% to all other countries.
