China trade outlook worsens as exporters lose trading confidence. Traders are apprehensive as they face weak external demand, along with rising labour costs and the seen rise of the yuan currency.
The comments about the deteriorating trade outlook came after China's exports fell 3.1% as compared to last year. The decline was the first seen since January 2012 and is said to be well below market expectations. The fall reinforces signs of economic slowdown in the world's second-largest economy. Economists expected exports to grow at least 4% and imports to rise at a minimum of 8% last month.
Customs spokesman, Zheng Yuesheng, said that the June trade figures accurately reflect China's export performance, this is after the government crackdowns on exporters' practices of booking of speculative inflows like trade deals.
"Exports in the third quarter look grim," said Zheng.
Zheng noted that 49.2% of respondents to the monthly survey for June saw that the drop in the value of new export orders was not a good sign for the economy. 43.8% of respondents were not optimistic about their exports in the next two to three months.
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