UPDATE 2-China imports fall in June, trade surplus shrinks

Fri Jul 10, 2009 11:46am BST
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* China imports surprisingly robust due to domestic demand

* Pace of export decline also slows, but not as sharply

* June trade surplus shrinks to $8.25 billion

* Premier Wen frets recovery is not yet on solid ground

By Zhou Xin and Alan Wheatley

BEIJING, July 10 (Reuters) - The rate of decline in Chinese imports slowed sharply last month as the government's massive infrastructure spending sucked in commodities and other goods from the rest of the world.

Imports in June were 13.2 percent lower than a year earlier, compared with forecasts of a 20.4 percent decline and a 25.2 percent fall in May, the General Administration of Customs said on Friday.

As a result, China's trade surplus shrank to $8.25 billion, the lowest total since February and well below market forecasts of $15.2 billion.

"It's further evidence that domestic demand has snapped back," said David Cohen with Action Economics in Singapore. "It's one more indication of renewed momentum in the Chinese economy."  Continued...

 
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