China: External sector remains weak in August
September 10, 2012
Exports improved marginally in August, rising to a 2.7% expansion from a 1.0% increase in July. The reading was slightly below market expectations that had shipments increasing 2.9%. On the other hand, imports plummeted 2.6% over the same month last year, contrasting both the 5.7% rise tallied in July and the 3.5% increase expected by the market. The reading represents, in fact, the first drop since October 2009 - excluding the January and February figures, which are highly distorted by seasonal effects related to the Chinese Lunar New Year holiday. As a result, the trade surplus reached USD 26.7 billion in August, which was above both the USD 17.8 billion surplus recorded in the same month last year and the USD 19.5 billion expected by market analysts.