China growth slows to 7.7%

From Business Spectator:

"China's trade surplus widened less than expected in June, according to official statistics.

In June, China's trade surplus came in at $US27.12 billion ($A29.85 billion), after a May result of $US20.43 billion.

Bloomberg analysts forecast a trade surplus of $US27.8 billion.

Exports in the month decreased by 3.1 per cent, against expectations of a 3.7 per cent rise.

Imports shrank by 0.7 per cent, well below expectations of a six per cent increase.

Customs spokesman Zheng Yuesheng says China's foreign trade is "facing grave challenges".

The main cause was "prolonged sluggish foreign demand", followed by rising export prices in foreign currency terms, labour costs, and a deteriorating trade environment due to rising trade disputes, he said.

But the trade surplus for the first six months of 2013 was substantially higher than the same period last year, the statistics showed, up 58.5 per cent to $US107.95 billion.

First half exports rose 10.4 per cent to $US1.05 trillion and imports increased 6.7 per cent to $US944.87 billion.

Mr Zheng said the factors bedevilling China's trade situation are likely to linger over the short term."

Futures markets are now pricing in an August interest rate cut as 62% likely.