China’s exports and imports shrank at a slower pace for a second month in September, customs data showed on Friday, adding to the recent signs of a gradual stabilization in the world’s second-biggest economy thanks to a raft of policy support measures.

Although firm challenges remain in an economy facing persistent deflationary pressure, a long-standing property crisis, slowing global growth, and geopolitical tensions, the trade report should provide some encouragement to authorities.

According to a Reuters poll, outbound shipments dropped 6.2% in September compared to the same month last year, following an 8.8% decline in August.

Two weeks ago, an official factory survey showed a rise in new export orders, partly because of the peak export shipping season for Christmas items and favorable base effects.

China’s trade data is the latest sign that global trade has bottomed out due to the cyclical upturn in global electronics,” said Xu Tianchen, senior economist at the Economist Intelligence Unit.

In September, South Korean exports to China, a leading indicator of China’s imports, fell at their slowest pace in 11 months. Their trade is dominated by semiconductors, signaling that Chinese manufacturers are becoming more eager to re-export finished goods containing components.

The General Administration of Customs’ spokesperson, Lv Daliang, said at a press conference earlier Friday that China’s trade still faces severe external challenges.

As domestic demand gradually recovered, imports also declined at a slower rate, falling 6.2%. Despite a reduction of 7.3% in August, imports fell below the poll’s forecast of 6.0% decline.