BEIJING (CNBC) — China’s exports fell in May for the first time since February, adding to concerns that growth in the world’s second-largest economy could be faltering.
Exports fell 7.5% year-on-year to $283.5 billion, customs data showed Wednesday, far worse than the 0.4% decline predicted by a Reuters poll.
The decline was so sharp that export volumes came in below their levels at the start of the year, after accounting for seasonality and changes in export prices, Julian Evans-Pritchard, head of China Economics at Capital Economics, said in a note.
In April, China’s exports beat expectations slightly with 8.5% year-on-year growth. However, the disappointing export figures for May indicate that the longer-term trend is down, said Hao Hong, chief economist at Grow Investment Group.
China won’t be able depend on trade to boost its economy for “another six months, for sure,” he said, noting a drag from lackluster U.S. demand, where inflation — and interest rates — remain high.
Customs data released Wednesday showed the dollar value of China exports to the U.S. slumped 15.1% in May from a year earlier, while exports to the European Union declined 4.9%. China exports to ASEAN, however, rose 8.1% in dollar terms in May from a year earlier.