Chinese trade data yesterday showed the surplus ballooned to $US59.49 billion. That’s the third-largest surplus recorded.
But the bad news for the global economy and Australian business is that imports collapsed.
Annette Beacher, TD Securities’ chief Asia-Pac macro strategist, highlighted this in a note to clients.
Over the past year, import data weakness was primarily via prices and not volumes, however, this May report reveals a slide in import volumes in the commodities we watch closely such as iron ore and fuel. Clearly, slowing overall GDP growth is impacting on volumes and not just prices.
That means that imports from Australia are collapsing.
Here’s Beacher’s chart: