China’s exports unexpectedly contracted in October, a key sign that global trade is contracting sharply as aggressive anti-inflation moves by central banks force consumers and businesses to cut spending.
China’s General Administration of Customs said on Monday that China’s exports fell 0.3% in October from a year earlier. It was the worst performance since May 2020, when initial efforts by countries to contain the worsening global Covid-19 outbreak hampered trade. China’s October export data fell well short of the 4% year-on-year increase expected by economists polled by The Wall Street Journal.
Falling exports from China, the world’s factory, have added to the gloom that has loomed over the global economy. The U.S. labor market is showing signs of cooling as the Federal Reserve raises interest rates to tame high inflation. Europe faces a rough winter after Russia decided to cut energy supplies in response to sanctions over the Ukraine war.
Data released on Monday showed that China’s exports to the United States fell 13% in October from a year earlier, the third straight month of declines; China’s exports to the European Union fell 9% in October.
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