This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China Reports Weak September Imports

By Joe McDonald, AP Business Writer

BEIJING -- China's import growth recovered slightly in September but was weak, suggesting that a recovery for the world's second-largest economy from a painful slump has yet to take hold.

Imports rose 2.4%, an improvement over August's unexpected 2.6% contraction but well below the government's 10% target for overall trade growth this year, customs data showed Saturday. Exports rose by a relatively robust 9.9% despite economic problems in Europe and the U.S.

The data add to indications that Chinese industrial activity is still weak despite two interest rate cuts since the start of June and higher spending on building airports and other public works. Officials including President Hu Jintao have warned growth that fell to a three-year low of 7.6% in the quarter ending in June might decline further before recovering.

Forecasters expect a slight decline in economic growth to about 7.3% when figures for the latest quarter are reported next week.

> > Bull or Bear? Vote in Our Poll

The World Bank cut its growth forecast for China this year to 7.7% from its May outlook of 8.2%. That is far stronger than the U.S. and Japan, where growth is forecast in low single digits, but painful for Chinese companies that rely on a rapid expansion to drive demand for new factories and office buildings.

The World Bank said China faces the risk of an even deeper downturn if conditions in its key export markets worsen.

Chinese factory output in August fell to a three-year low. Manufacturing improved in September but still was contracting. September auto sales shrank by 0.3%, extending a steady decline from double-digit growth levels earlier this year.

The slowdown is due largely to government curbs imposed to cool an overheated economy and try to make China more efficient and resilient by reducing reliance on imports and investment and promoting domestic consumption and technology-based industries.

That has hurt construction and heavy industry such as steel and cement producers, sharply reducing China's demand for imported iron ore, copper and other raw materials. That is a blow to commodity exporters such as Australia, Brazil and some African nations where voracious Chinese demand for imports has driven an economic boom.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $130.63 -0.87%
FB $79.20 -1.20%
GOOG $532.48 -1.40%
TSLA $250.75 -0.28%
YHOO $42.93 -0.33%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs