China trade tumbles in May, highlighting slowdown of economic recovery

China’s exports fell 7.5% from a year earlier in May and imports were down 4.5% due to global headwinds

China's exports fell 7.5% from a year earlier in May and imports were down 4.5%, adding to signs that an economic rebound following the end of the anti-virus controls is slowing as global demand weakens due to higher interest rates.

Exports slid to $283.5 billion, reversing from April's unexpectedly strong 8.5% growth, customs data showed on June 7. Imports fell to $217.7 billion, moderating from the previous month's 7.9% contraction. China's global trade surplus narrowed by 16.1% to $65.8 billion.

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Trade weakness adds to downward pressure on the world's second-largest economy following a lacklustre factory and consumer activity and a surge in unemployment among young people.

“China's exports will remain subdued, as we anticipate the U.S. economy to enter recession,” Lloyd Chan of Oxford Economics said in a report.

Factory output and consumer spending revived after controls that cut off access to major cities for weeks at a time and blocked most international travel were lifted in December. But forecasters say the peak of that rebound probably has passed.

Retail spending is recovering more slowly than expected because jittery consumers worry about the economic outlook and possible job losses. A government survey in April found that 1 in 5 young workers in cities were unemployed.