The export figures are a focus and they are poor indeed. But save some space in the barf bag for the import results, they are terrible – huge miss on these.
Demand in China has been showing evidence of slowing. This is a nail in the coffin.
December 2018 Data – Yuan Terms
- China trade balance comes in at CNY 395bn, expected CNY 345bn, prior was CNY 306bn
- Exports 0.2% y/y, expected 6.6%, prior was 10.2%… BIG MISS
- Imports -3.1% y/y, expected 12.0%, prior was 7.8% … even bigger miss
December 2018 Data – US Dollar Terms
- China trade balance USD 57.06bn, expected $51.6bn, prior was $44.7bn
- Exports -4.4% y/y, expected 2.0%, prior 5.4%
- Imports -7.6% y/y, expected 4.5%, prior was 3.0%
Chinese Investment in the US Slumps to 7-Yr Low
Including $13bn in US asset divestitures by Chinese investors, China’s net US investment actually shrank by $8bn in 2018.
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