China’s trade data for September showed a mixed picture, with exports growing by 2.4% in U.S. dollar terms, while imports rose by 0.3%. These figures fell short of expectations, as exports were forecasted to increase by 6% and imports by 0.9%. This slowdown in trade activity comes amidst challenges in China’s economy, including weak consumer spending and a real estate slump.

Exports to the U.S., China’s largest trading partner, saw a modest increase of 2.2%, while imports from the U.S. rose by 6.7%. In contrast, exports to the Association of Southeast Asian Nations increased by 5.5%, and exports to the European Union rose by 1.3%.

On the domestic front, inflation data indicated further weakness in China’s consumer demand. The core consumer price index, which excludes food and energy prices, only rose by 0.1% year-on-year in September, the slowest rate since February 2021. Tourism-related prices even fell by 2.1%, despite the holiday season.

Looking ahead, China’s National Bureau of Statistics is set to release third-quarter GDP data, along with retail sales, industrial production, and fixed asset investment figures for September. Chinese authorities have been announcing stimulus measures to support the economy, but the lack of detailed fiscal policies has left investors uncertain.

As markets in China navigate the impact of government support, it remains to be seen how these economic indicators will shape the country’s growth trajectory. Stay tuned for updates on this evolving situation.