China's export growth gains steam despite weakening global demand Containers are seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai.
BEIJING Reuters -- China's export growth unexpectedly picked up speed in July, giving an encouraging boost to the economy as it struggles to recover from a severe COVID-induced slump, though imports remained sluggish.
In July, shipments grew 18.0% from a year earlier, the fastest pace this year, official customs data showed on Sunday, compared with a 17.9% rise in June, beating analysts' expectations for a 15.0% gain.
Analysts had been expecting exports to fade amid growing signs of cooling global consumption.
Demand weakened in July, with orders and output indexes falling to their lowest levels since the onset of the COVID-19 epidemic in early 2020, according to a global factory survey released last week.
China's official manufacturing survey indicated activity contracted last month, raising fears that the economy's recovery from widespread lockdowns in the spring will be slower and bumpier than expected.
There were signs that transport and supply chain disruptions caused by the lock-downs were easing, just in time for shippers preparing for peak year-end shopping demand.
In July, foreign trade container throughput at eight major Chinese ports increased by 14.5%, a leap from the 8.4% gain in June, according to the data released by the domestic port association.
Import growth was less than expected, suggesting that China's domestic consumption remains soft.
Imports rose 2.3% from a year earlier, compared with June's 1% gain and missing a forecast of a 3.7% rise.
As the government ramps up infrastructure spending, analysts expect import momentum to pick up modestly in the second half of the year, as equipment and commodities are supported by construction-related equipment and commodities.
China posted a record $101.26 billion trade surplus last month because of the low reading on imports but solid export growth. Analysts had predicted a $90.0 billion trade surplus.
The economy is in the critical window of stabilisation and recovery, and the third quarter is vital, according to the country's top economic planners last week. Top leaders signalled they were prepared to miss the government growth target of around 5.5% for 2022, which analysts said had been looking increasingly unattainable after the economy narrowly avoided contracting in the second quarter.
In late July, the International Monetary Fund cut its growth forecast for China from 3.3% to 4.4% in April, citing COVID lockdowns and the worsening crisis in the country's property sector.