THE country’s exports and imports contracted less than expected in October, providing some relief for the economy.

China’s exports fell for the third straight month in October, down 0.9 percent from a year earlier, customs data showed Friday, less than a 3.9 percent fall forecast in a previous poll and September’s 3.2 percent contraction.

“Even if the “phase one” Sino-U.S. trade deal crosses the finish line, it is unlikely to alleviate the main headwinds facing exporters and outbound shipments look set to remain weak in the coming months,” said Martin Rasmussen, economist at Capital Economics.

He attributed the rise in exports to a pickup in U.S. demand after both countries outlined an interim deal and Washington suspended a threatened tariff hike set for Oct. 15.

There were other bright spots in the data. Exports to the United States in October fell 16.2 percent, less than a 21.9 percent drop the previous month, according to media calculation based on customs data.

China’s imports shrank for the sixth consecutive month, though the 6.4 percent drop was smaller than an expected 8.9 percent and September’s 8.5 percent decline.

That left China with a trade surplus of US$42.81 billion in October, versus September’s US$39.65 billion surplus. Analysts had forecast a US$40.83 billion surplus.

Despite the more modest drop in imports, domestic demand appeared to remain weak, with imports of iron ore and copper falling.

China’s trade surplus with the United States was at US$26.42 billion in October, up from US$25.88 billion in September, according to media calculation based on customs data.

(SD-Agencies)