Chinese export growth slows sharply in September

HONG KONG

China's export growth slowed sharply in September while imports remained sluggish, data showed Monday, as authorities wait for recent stimulus measures to perk up weak domestic demand.

The country's overseas shipments grew 2.4 percent on-year last month, according to China's General Administration of Customs, a dramatic deceleration from 8.7 percent in August.

September's reading also falls short of the 6.0 percent growth forecasted by Bloomberg analysts.

And imports in September inched up 0.3 percent on-year, down from August's 0.5 percent in a sign of weak domestic demand.

The figures come on after data on Sunday showed the country's consumer inflation rate also slowed in September, a further indicator of lacklustre demand.

Authorities have been seeking to boost domestic activity and shore up China's ailing property sector, with officials on Saturday announcing plans for a significant fiscal stimulus package.

In recent weeks, Chinese policymakers have unveiled a string of measures in a bid to stimulate activity and spur household consumption.

On Saturday, China's finance minister Lan Fo'an said the country would issue special bonds to bolster banks, signalling an impending spending spree to shore up the property market and ease local government debt.

The plan is part of a series of actions undertaken by Beijing to draw a line under a years-long property sector crisis and chronically low consumption that has plagued the economy.

Also on Saturday, China's top banks said they would lower interest rates on existing mortgages from Oct. 25.

"After accounting for changes in export prices and for seasonality, we estimate that export volumes softened a touch," said China economist Zichun Huang of Capital Economics in a note on Monday.

"We think shipments will stay strong in the near term, supported by gains in export competitiveness. Further ahead, though, growing trade barriers are likely to become an increasing constraint," Huang wrote.