China’s exports fall abruptly in May

China’s exports fell last May for the first time in three months, adding to concern about the world’s second-largest economy.

Official data on Wednesday showed exports shrinking by 7.5% from a year ago to $284 billion, worse than the average forecast for a 1.8% decline. Imports fell 4.5% to $218 billion, better than expected 8% decline. The country has thus achieved a trade surplus of $66 billion.

Early this year’s export growth represented a bright spot for the economy, helping to boost the recovery after China abandoned its pandemic-related restrictions. But recent data showed a weak recovery, with manufacturing activity shrinking in May and home sales growth slowing after rebounding earlier in the year.

While last month’s trade figures may have been influenced by the comparison base from last year, the data also reflect weak global demand. Economists also expect China’s exports to contract this year.

The benchmark CSI 300 index fell 0.4% in mid-day, while the Shanghai Composite nearly erased gains of up to 0.5%. The external yuan exchange rate moved slightly to 7.1286 yuan per dollar.