China narrowed its export decline in May but its imports fell more than expected, data from the Chinese Customs showed.

The Customs announced on Monday the country’s exports decreased 2.5 percent from the previous year to US$191.2 billion in May, recovering from a 6.2-percent drop in April and a 14.6-percent plunge in March.

Chinese state-run news agency Xinhua described it as “an encouraging sign”. It quoted HSBC chief China economist Qu Hongbin saying the improvement in exports was driven by increased trade with the United States and others. But he added that, “meanwhile, poor export performance will continue to weigh on manufacturing investment, employment and firms’ sentiment”.

The Customs also said on Monday that May imports tumbled 17.6 percent, against an expected slide of 10.7 percent. It meant a trade surplus of US$59.49 billion. Xinhua quoted HSBC saying the contraction in imports indicated “soft domestic demand” in China.

In the first five months of this year, China’s total trade posted a contraction of 8 percent, compared with the official target of 6-percent growth for the whole year.