SUMMARY
- Exports groove with 8.5% growth in April, imports take a 7.9% dip
- Goldman Sachs attributes mellow trade data to "residual seasonality" post-Lunar New Year
- Inflation knockin' on the door, but central bankers stay chill about upcoming rebound
China's export scene is vibin' with an 8.5% growth in April, marking two months of back-to-back growth, while imports decided to chill out, dropping 7.9% compared to a year ago.
Economists had their bets on an 8% export rise in April, while imports were predicted to stay steady. Instead, March saw imports dip 1.4% YoY, while exports soared with a surprise 14.8% increase. China's trade surplus in April amounted to $90.21 billion, a cool uptick from March's $88.2 billion surplus.
Our pals at Goldman Sachs reckon the mellow April trade data might be due to some "residual seasonality" after this year's Lunar New Year celebrations. They anticipated that the seasonal vibes would slow down export growth in April.
Despite some bummer factory data, China's service sector keeps the good times rollin' as a bright spot in the world's second-largest economy. However, Goldman Sachs' economists remind us that China's fastest reopening days are behind it, but they're still predicting a solid 6% growth in 2023.
Inflation's knockin' on the door, with China's inflation data due for release soon. Economists predict a 0.3% YoY increase, while month-on-month, prices are expected to stay steady. Will central bankers be worried about deflation? Not likely, as they seem pretty chill about an upcoming inflation rebound.
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