By Sagar Patel
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China’s exports posted growth for the fifth consecutive month, which is a sign of rising overseas demand. However, imports have declined amid the slowdown in the Chinese economy. According to data released by China’s Customs Bureau on Tuesday, exports in August rose 8.7 percent to $308.65 billion compared with the same period last year. This is more than economists’ estimate of around 6.5 percent. Exports rose in July at a pace of seven percent.
August broke the record
This August figure is the strongest in 18 months. The main reason for this is the low base in August 2023, when exports declined by 8.8 percent. In comparison, imports rose by only 0.5 percent compared to the previous year. This is less than the estimate of around two percent made by economists.
Jichun Huang of Capital Economics said export prices have risen at the fastest pace in the past 17 months. Export volume has reached a record high. We expect exports to remain strong in the near term, supported by the decline in China’s real effective exchange rate. China’s trade surplus widened to $91.02 billion in August from $84.65 billion in July. Export demand is rising, but China is struggling to boost domestic demand.
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What does the report say?
According to data released on Monday, the consumer price index rose 0.6 percent in August, lower than forecasts. Officials cited a rise in food prices due to bad weather as the reason for the high CPI. However, the core CPI (which excludes food and energy prices) rose only 0.3 percent in August, the lowest level in three years. China’s manufacturing activity fell to its lowest level in six months in August, according to an official survey of factory managers, and the purchasing managers’ index fell to 49.1, according to official data released last week. A reading below 50 shows a decline in manufacturing activity.
I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
