China’s imports grew strongly in May, accelerating from 11.6% year-on-year in April to 15.6%. This was much higher than the growth rate of 8.6% predicted by a Bloomberg poll of economists and marked a turnaround from the sluggish growth seen in Q1, according to Reuters.
Export growth in renminbi terms dropped slightly from 3.7% y/y in April to 3.2% (against a Bloomberg average of 1.6%). Despite an uptick in foreign demand last month in terms of export orders, export growth for the year remains on a downward trend.
The result has been a contraction of China’s trade surplus in May from RMB 183 billion ($28.6 billion) to RMB 157 billion, going against the precedent set by previous years in Q2 and furthering the trend seen by Q1’s trade deficit.