China’s exports miss expectations in July, while imports pick up with growth of 7.2%, imports grew faster-than-expected in July, while export growth came in below forecasts, according to customs data released.
Giving its views on the latest date, MIDF noted on the kingdom’s exports which expanded +7.0%yoy in Jul-24, the softest rise in 3 months and lower than market expectations of +9.7%yoy. Exports to the US surged by +8.1%yoy, the fastest pace in 2 years, while shipments to the EU advanced by +8.0%yoy, the steepest rise in nearly 2 years. However, exports to the UK contracted by -2.8%yoy.
Oversea sales to ASEAN marked the 3rd consecutive month of double-digit growth at +12.2%yoy, with exports growth to Malaysia surpassing ASEAN’s total at +13.3%yoy. China’s imports rebounded with a +7.2%yoy increase, exceeding market expectations of +3.5%yoy. Imports from ASEAN rose by +11.1%yoy, recovering from a -4.8%yoy decline in the previous month, and shipments from Malaysia grew by +13.6% yoy. The moderation in China’s export growth reflects the decline in the China NBS Manufacturing PMI to 49.4 due to the traditional off-season and extreme weather conditions.
Overall, the rebound in China’s imports and the sustained expansion of exports indicate a recovery in global trade conditions. Consequently, the said it maintains forecast that Malaysia’s exports will rebound and grow by +5.2% in 2024 (2023: -8.0%).
