China retail sales drop for first time in 3 years but exports surge

A look at rise and fall in retail sales in various goods in China. (Chart generated by Gemni using data by National Bureau of Statistics of China)

Industrial output expanded by 4.5 per cent year on year in May – higher than 4.1 per cent growth in April, but down from 5.7 per cent in March — with China’s factories resorting to soaring exports to balance out the plummeting domestic demand.

According to Chinese customs data released on Tuesday, the nation’s exports went up by 19.4 per cent year on year to US$376.78 billion in May — well beyond the 12.39 per cent growth forecast by economists at a Wind poll.

China’s imports also grew by 27.4 per cent last month to US$271.35 billion, surpassing predictions of 20.15 per cent growth. China’s trade surplus hence increased to US$105.43 billion last month against US$84.82 billion in April.

A look at the export performance of a few goods

Integrated circuits: Grew 110.9% in value, while physical volume was up by just 2.1%.

Mechanical & electrical products: Contributing a major share in exports, grew 27.4% in value.

Rare earth elements: Export volume fell 6.39% owing to tight domestic shipping controls.

A look at the import performance of a few goods

Microchips: 68% increase in value, despite a 1% drop in actual volume.

Crude Oil: This has cost China $26.7 billion (up 15.31% in value), even as the physical shipments went up by 29.01% in volume.

Soybeans: The imports plunged 15.3% to 11.79 million tonnes.