China’s February trade report has stunned financial markets.
Imports surged while export growth slowed, leading to a shock trade deficit being recorded.
According to China’s General Administration of Customs, yuan-denominated imports jumped by 44.7% from the levels of a year earlier, easily surpassing the 25.2% growth of January and forecasts for a smaller increase of 23.1%.
Truly enormous, and no doubt impacted by booming commodity prices and a weaker yuan over the past year.
Distortions created by the timing of the Lunar New year — often a feature in the trade figures and other Chinese economic data at this time of year — almost certainly were another factor.
Indeed, adding credence to that view, while imports surged, export growth slowed sharply over the same period.
The Customs bureau said that they grew by 4.2%, well below the 15.9% pace of January and expectations for a smaller rise of 14.6%.
As a result of this highly-divergent performance, the nation’s trade balance swung back to deficit, coming in at CNY 60.36 billion.
That was just a smidge away from the CNY 172.5 billion surplus that had been expected.
Chinese Customs are due to release USD-denominated figures shortly.
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