China’s Aug imports beat estimates, export growth cools off
The stronger than expected import growth in the world’s second largest economy was attributed to improved demand for industrial commodities including high-quality foreign iron ore and coal, which reinforced views that the country’s economy is still expanding at a healthy pace despite tighter policy.
However, export growth slowed to 5.5% on a yearly basis from 7.2% in July. Analysts’ forecasts were calling for a 6.0% increase. Although export growth in August was the slowest since shipments fell in February, analysts do not foresee a sharp fall for the world’s largest exporter as global demand seems to be robust. Meanwhile, China’s electronics exports, which tend to be higher value and higher margin goods, increased 7.4% in August on improving global demand.
The data also showed that China’s exports to the US climbed 8.4% in August, the slowest pace since a drop in February, while imports from the US rose 18.1% from last year after an increase of 24.2% in the previous month.
The economic growth in the first half climbed to 6.9%, which is likely to lend support to meet or beat the country’s full-year growth target of about 6.5%.
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