China trade data underscores growth worries

The latest figures,shorn of the hot money speculation and exports to warehouses but booked as sales that had inflated previous months data,more accurately reflect the grim reality facing Chinas exporters.

The trade data reflects the sluggish domestic and overseas demand,signalling a slower-than-expected recovery in the second quarter, said Shen Lan,an economist at Standard Chartered in Shanghai. Data for May retail sales and industrial output,as well as investment and inflation,are due on Sunday and could provide more evidence of the slowdown.

Exports edged up 1 per cent in May from a year earlier,the lowest growth since last July.