Chinese trade data published on Sunday revealed the impact from the coronavirus crisis. Exports contracted in May as global lockdowns continued to sink demand, while a sharper-than-expected fall in imports pointed to mounting pressure on manufacturers as world growth stalls.
China's posted a record trade surplus of $62.93 billion last month, compared with $45.34 billion surplus in April, as exports in May fell a less-than-expected 3.3% compared with a year earlier, but imports plunged 16.7%, the General Administration of Customs said. China's trade surplus with the United States widened to $27.89 billion in May.
The new export orders component of the official manufacturing purchasing managers' index (PMI) was 35.3 for May, following a 33.5 reading in April. A number below 50 signifies contraction, the further below 50, the worse the mood among producers. The Caixin/Markit manufacturing PMI, a survey of smaller factory owners, reported on Monday that new export orders contracted at a historically sharp rate.
The sombre trade readings for the world's second-biggest economy could pile pressure on policymakers to roll out more support for a sector that is critical to the livelihoods of more than 180 million workers.
CURRENCY NEWS: The yuan weakened against the dollar on Monday, despite firmer mid-point fixing by central bank, due to on fresh U.S. tariff threats and seasonal pressures after China's trade surplus hit a new high in May.. Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 7.0882 per dollar, 0.12% firmer than the previous fix of 7.0965.
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