China: Further trade weakness? - TDS

TD Securities analysts are looking for a deterioration in both exports and imports in June for the Chinese economy, with the former likely to drop by -3.0% and the latter by -9.2%.

Key Quotes

“Weakness in trade continues to be signalled by forward looking indicators, with both new export orders and imports PMI, falling further into contraction territory in June.”

“Additionally, exports from Korea to China continue to weaken, plunging by 24% y/y in June while imports are not much better, rising by only 1.2% y/y in the same months, adding further evidence to a softening in Chinese trade.”