China's growth in exports and imports slows, adding to signs of fragility

Annual growth in China's exports and imports slowed in October, data showed yesterday, reinforcing signs of fragility in the world's second-largest economy that could prompt policymakers to roll out more stimulus measures.

Exports rose 11.6 per cent last month from a year earlier, slowing from a 15.3 per cent jump in September, the General Administration of Customs said. The figure was slightly above market expectations in a Reuters poll of a 10.6 per cent rise.

A decline in China's leading index on exports in October pointed to weaker export growth in the next two to three months, the administration said.

"The economy still faces relatively big downward pressure as exports face uncertainties while weak imports indicate sluggish domestic demand," said Nie Wen, an economist at Hwabao Trust in Shanghai. "The central bank may continue to ease policy in a targeted way."

Imports rose an annual 4.6 per cent in October, pulling back from a 7 per cent rise in September, and were weaker than expected. That left the country with a trade surplus of US$45.4 billion for the month, which was near record highs.

Annual growth slowed to 7.3 per cent in the third quarter - the weakest since the height of the global financial crisis - as a cooling property sector weighs on domestic demand.