Slowdown fear eased as China data improves

 
Chris Papadopoullos
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CHINA’S trade data released yesterday showed a healthy gain in domestic and foreign demand with exports and imports surpassing expectations.

Exports grew 15.3 per cent year-on-year in September compared with 9.4 per cent in August.

Imports soared ahead at seven per cent year-on-year growth, up from minus two per cent in August.

Technology exports grew strongly, suggesting that sales of the iPhone 6 might have contributed to the export boom.

However, some economists believe the figures may be overstated and that demand was still weak. Louis Kuijs, chief China economist at Royal Bank of Scotland in Hong Kong, said: “Today’s data is less good news than it appears. It suggests that China’s export growth is holding up. However, the important caveat coming from the breakdown of the import data suggests that demand growth in China’s own economy remains weak.”

Meanwhile, India’s annual rate of inflation fell to 6.5 per cent in September, much lower than the 7.8 per cent seen in August. It is now far below the central bank’s target of eight per cent and may prompt rates to fall earlier than expected.