China’s exports grew for a fifth consecutive month, in a sign of growing demand abroad even as imports fell amid a slowing Chinese economy.
Exports in August expanded by 8.7% to $308.65 billion compared to the same period last year, according to data released by China’s customs office Tuesday, beating economists’ estimates of about 6.5%. The export figures for August were also up from the 7% rise in July.
The reading in August is the strongest in 18 months, thanks in part to a low base in August 2023, when exports declined 8.8%.
By comparison, imports grew just 0.5% compared to a year ago, falling short of the approximately 2% estimate by economists.
Chinese leaders have ramped up investment in manufacturing to rev up an economy that stalled during the pandemic and is still growing slower than hoped.
“Export values grew year-on-year at the fastest pace in 17 months, with export volumes hitting record highs. We expect exports to remain robust in the near term, supported by the decline in China’s real effective exchange rate,” said Zichun Huang of Capital Economics.
“Imports volumes fell last month, but they will probably rebound in the coming months, with strong external demand lifting imports for processing and re-export, and increased fiscal spending boosting industrial commodities demand,” Huang said.
The Association of Southeast Asian Nations remained China’s largest trading partner, and exports to ASEAN, the United States and the European Union have expanded compared to the same period last year.
China’s trade surplus widened to $91.02 billion in August, up from $84.65 billion in July.
While the demand for exports is on the rise, China struggled with boosting demand domestically.
The consumer price index rose 0.6% in August, missing forecasts according to data released Monday. Officials attributed the higher CPI to an increase in food prices due to bad weather.
But the core CPI, which excludes food and energy prices, rose by just 0.3% in August, the slowest in over three years.
In August, China’s manufacturing activity fell to a six-month low according to an official survey of factory managers, with the Purchasing Managers’ Index index slipping to 49.1 according to official data released last week. A reading below 50 indicates a contraction of manufacturing activity.
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