Factory activity of China likely rose for a second straight month in April 2020 as more businesses re-opened from strict lockdowns implemented to contain the coVID-19 outbreak, which has now paralysed the global economy.
Imports and exports of China likely fell in January after a brief rebound at the end of last year and a rapidly spreading virus outbreak could disrupt its global trade for months to come.
Exports of China rose for the first time in 5 months in December and by more than expected, signaling a modest recovery in demand as Beijing and Washington agreed to defuse their prolonged trade war.
Exports of China are expected to have risen for the first time in four months in November, a Reuters poll showed, though a protracted trade row with the United States and slack global demand mean a sure-footed turnaround in shipments is some way off.
This year’s surplus in the current account — which measures the flow of goods, services and investments — is seen at $276 billion, Ifo economist Christian Grimme told Reuters. He added that Japan’s surplus is projected to come in at $188 billion, followed by China with $182 billion.
United States President Donald Trump said this week he may soon sign a deal with Chinese President Xi Jinping to end a trade war blamed for slowing global economic growth and disrupting markets.
Activity in vast manufacturing of China sector shrank for the second straight month in January, pointing to further strains on the economy that could heighten risks to global growth. Anxiety about cooling demand in China is rippling through the world’s financial markets and weighing on other economies of Asia after a string of sales warnings from heavy machinery producer Caterpillar to iPhone maker Apple.