China, October exports slump to -1.1%. Domestic consumption and tariffs take their toll

China's exports and imports fell sharply in October, more than expected, marking an uncertain economy amid stifling consumption and trade tensions with the US. According to data from the Beijing Customs Administration, shipments had a negative annual balance at -1.1 per cent, a sharp correction from September's +8.3 per cent and the +3 per cent estimated on the eve of the event, while foreign purchases rose by just 1 per cent, compared to September's +7.4 per cent and expectations of +3.2 per cent.

However, the trade surplus stood at USD 90.07 billion last month, stable at USD 90.45 billion in September and less than the expected USD 95.6 billion.

China reported that its exports contracted due primarily to a 25 per cent drop in shipments to the US. Persistent trade tensions with Washington could find a respite in the last quarter of the year, after President Donald Trump and Chinese leader Xi Jinping agreed last week to ease the trade war between the two largest economies.

However, trade tensions still seem to be negatively affecting demand elsewhere. Customs data released on Friday showed China's global exports fell 1.1 per cent in October from a year earlier, following an 8.3 per cent increase in September. Imports rose 1 per cent last month from a year earlier, compared with a 7.4 per cent growth in September.