China's exports grow 7.6% in May, beat expectations amid trade tensions

China's exports for May beat analyst expectations despite trade tensions, though imports shrank, according to customs data released Friday.

Exports jumped 7.6 per cent in May from the same time last year to $ 302.35 billion. Imports however rose by 1.8 per cent to $ 219.73 billion, missing estimates of about 4 per cent growth.

The uptick in exports is also partly due to a lower base from the same period last year, when exports declined 7.5 per cent.

In comparison, imports grew by 1.5 per cent in April compared to the same period last year while April imports rose by 8.4 per cent.

 

Strong exports also saw China's trade surplus widen to $ 82.62 billion, up from April's $ 72.35 billion.

China's growth in exports come as it faces escalated trade tensions with the US and Europe. The US is ramping up tariffs on China-made electric cars while Europe is considering levying similar tariffs.

Factory activity in China slowed more than expected in May, according to an official survey released last week.

The manufacturing purchasing managers index from the China Federation of Logistics and Purchasing fell to 49.5 from 50.4 in April on a scale up to 100 where 50 marks the break between expansion and contraction.