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Supplies to other nations rise 3.1% on-year; overall shipments drop 1.1% China's exports unexpectedly contracted in October as global demand failed to offset the deepening slump in shipments to the US, dealing a blow to an economy already slowing amid sluggish consumer spending and investment at home.Exports fell for the first time in eight months, dropping 1.1% from a year earlier, according to official data released on Friday. Shipments to all nations except the US rose 3.1%, not enough to compensate for the more than 25% decline to America."If the strength in exports cannot be sustained, China's growth could face a 'triple whammy' from the prolonged contraction in the property sector, and weakened private consumption and exports," Barclays economists including said in a note.Chinese exports have been resilient until now, as other destinations made up for drops in shipments across the Pacific Ocean. Sales abroad had grown every month since February, when activity slowed because of the Lunar New Year holiday.But October marked a break in the trend of growth driven by the pursuit of new markets among Chinese companies. A range of trade indicators started to cool off from the record numbers seen in earlier months, with Shanghai port processing the fewest containers since April.Live EventsWith the US reducing tariffs on Chinese goods by 10% from next Monday, it's possible trade between the world's two largest economies could see a pickup through the year-end. The effect may prove limited, however, because duties on Chinese goods are still higher than those on products from countries such as Vietnam.And if the slowdown in demand from the rest of the globe continues, that could pull down shipments and the broader economy in the final two months of the year. Already last quarter China's economic growth decelerated to the weakest pace in a year even as exports boomed.The weakness looked to be broad in October, when shipments to the European Union climbed 1%, the slowest growth since a drop in February. Exports to some other major markets fell as South Korea, Russia and Canada saw sales dropping by double digits.US Consumers see Worse Job Market, Muted InflationAmericans' perceptions of the job market worsened in October while their expectations for inflation edged lower, according to a monthly survey by the Federal Reserve Bank of New York.Unemployment expectations rose for a third straight month as consumers assigned an average 43% probability-the highest since April-to the likelihood the US unemployment rate will be higher one year from now, survey results published on Friday showed. Expectations for consumer price increases in the year ahead ticked down to 3.2% in October from 3.4% in September.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onchina exportsus tariffsus consumerschina economybarclays (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onchina exportsus tariffsus consumerschina economybarclays(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
