China's exports beat expectations in August
By Sean Farrell
Date: Monday 07 Sep 2020
(Sharecast News) - China's exports beat expectations in August as the world's biggest manufacturing nation's overseas markets reopened from Covid-19.
Exports rose 9.5% from a year earlier, up from 7.2% in July and beating analysts' consensus forecast for a 7.1% increase. Growth was the strongest since March 2019, official figures showed.
China's trade surplus fell to $59.9bn (£45bn) from $62.3bn in July and August's figure also beat expectations for a $49.7bn surplus. The decline in imports worsened to -2.1% from -1.4% in July, dashing expectations of a 0.2% increase and suggesting weaker domestic demand.
The figures support a recent survey showing Chinese factories picking up activity at the fastest pace for almost a decade as export orders increased for the first time in 2020. China's manufacturers have been recovering as overseas markets for their goods unlocked their economies from Covid-19 shutdowns.
Miguel Chanco, an Asia specialist at Pantheon Macroeconomics, said the export growth was flattered by weak figures a year earlier and that outbound shipments slipped 0.3% in August from July.
"Exports to the EU, in particular, remained weak, edging down for a third straight month," Chanco said. "The strong lift provided by demand from the US and Asia softened markedly in August, partly reflecting the renewed pressures exerted by second waves of Covid-19."
Imports were better than the headline figure suggested, he said. Inbound shipments rose 4.9% from July and were stronger than that month's 1.1% gain, Chanco said.
The figures show China recovering steadily from the severe economic shutdown imposed by the government to combat Covid-19 and subsequent widespread lockdowns in its major markets. Uncertainty lies ahead, though, as coronavirus cases rise in many large economies and trade tensions between China and the US remain severe.
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