China’s exports, imports likely to have continued expanding in May

The May trade figures for China are set to come out on Wednesday. Recently, both exports and imports have risen sharply. In April, China’s exports rose 8 percent year-on-year, whereas imports were up 11.9 percent year-on-year. The recent sharp rise of trade values has reversed the decelerating growth trend that has characterized China’s trade since 2010.

The recent surge in imports and exports is possibly a signal that global demand is strengthening, a notion that is affirmed by global export figures too. According to consensus, China’s imports are likely to have grown 9 percent in May, whereas exports are expected to have expanded 7 percent.

In the first quarter of this year, China’s GDP grew 6.9 percent with notable expansion in the secondary industry, which includes mining/quarrying, construction, manufacturing and utilities production. Most of these sectors are integral to the export industry. The manufacturing PMI of China continues to stay in expansionary territory, hinting that China’s exports might have room to run, noted Wells Fargo in a research report.