Friday, October 14, 2016

Which Matters More: Exports or Imports

China’s exports might be down more sharply, but imports are also down, and some analysts believe imports are a better indication of factory activity. Almost anything manufactured in China requires a range of imported inputs, so the decline in imports show that less manufacturing activity is taking place. You would expect a slight decline in inputs as manufacturing efficiency and yield increase over time, but imports into China are going down faster than that.

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