China: Trade data improve markedly in September
October 13, 2014
In September, exports increased 15.3% over the same month last year, which was an acceleration over the 9.4% expansion tallied in August. The print beat the 12.0% increase that market analysts had expected and represented the fastest pace of growth since February 2013. Imports rebounded in September, rising 7.0% annually, which contrasted the 2.4% drop observed in the previous month. The monthly increase topped the 3.0% expansion that market analysts had expected and marked a seven-month high.
Although the trade surplus narrowed from August’s all-time record of USD 49.8 billion to USD 30.9 billion in September, it was well above the USD 14.5 billion recorded in the same month last year. The print undershot market expectations of a USD 41.1 billion surplus. The 12-month moving sum of the trade surplus rose from USD 305 billion in August to USD 321 billion in September, which represented the highest level on record.
The healthy export figures tallied in recent months are likely to ease concerns about a sharp slowdown in the Chinese economy. That said, analysts warn that despite the strong rebound in imports, domestic demand remains weak. In addition, large trade surpluses continue to add appreciation pressure on the yuan.