Export improvement a welcome surprise

July growth rate exceeds expectations.

Hong Kong's merchandise exports recovered in July, rising 10.6% year-on-year to HK$305.41 billion, said the Census and Statistics Department.

This was a marked improvement from the decreases of 0.2% and 1% in June and May. Economists were looking for a more modest rise of 3.5% for July.

Imports recorded an 8.3% year-on-year increase in July, significantly faster than June's 1.4% growth. Imports were forecast to rise 4.7%.

Compared to June, the value of shipments rose 10% and external purchases increased by 4.7%.

July's overall trade resulted in a trade deficit of HK$37.2 billion compared to the much bigger shortfall of HK$49.67 billion a year earlier.