China’s Exports and Imports Show Growth in April
In a positive sign for the economy, China’s exports and imports saw growth in April after a contraction in the previous month. This indicates an improvement in demand both at home and overseas.
The data suggests that the various policy support measures implemented over the past few months are starting to stabilize investor and consumer confidence.
According to customs data, China’s shipments grew by 1.5 percent year-on-year in April, following a 7.5 percent fall in March. This growth was in line with the forecasted increase by economists in a Reuters poll.
Imports also saw a significant increase in April, rising by 8.4 percent compared to a 1.9 percent fall in March. This beat the expected rise of 4.8 percent.
Economist Huang Zichun from Capital Economics noted that while export values returned to growth, it was primarily due to a lower base for comparison. Adjusting for changes in export prices and seasonality, export volumes remained relatively unchanged from March.
Crude Oil Imports Rise in Preparation for Labor Day
China’s crude oil imports in April showed a 5.45 percent increase from the previous year, totaling about 10.88 million barrels per day. This rise was attributed to refiners preparing for a fully recovered Labor Day holiday travel season.
During the Labor Day holiday that began on May 1, China saw over 1.3 billion passenger trips, up 2.1 percent from the previous year. Highway traffic increased by 2.1 percent, while air trips surged by 8.1 percent.
The country’s manufacturing sector continued to experience a muted recovery in April, with natural gas imports rising by 14.7 percent year-on-year to 10.30 million tonnes.
Coal Imports Increase Due to Lower Domestic Production
China’s coal imports also saw a rise in April, fueled by lower domestic production and increased buying by power generators to build up stockpiles for the peak summer demand season. Shipments of coal into the country were up by 11 percent compared to the previous year.
The boost in coal imports was partly due to the fact that domestic production has not been able to meet the rising demand. China’s coal output fell by 4 percent in the first quarter, mainly because of safety inspections following deadly accidents in coal mines.