China’s August exports exceed expectations
China’s exports grew more than expected in August driven by strong global demand.
The world’s largest exporter recorded an increase of 25.6% year-on-year in its shipments. The latest gain was a sharp increase from the previous month’s 19.3% growth, indicating some resilience in China’s industrial sector. It also largely exceeded analysts’ forecast of a 17.1% expansion.
Sheana Yue, assistant economist at Capital Economics, said the breakdown of shipments revealed a broad-based increase across all types of goods. Retailers in advanced economies may have replenished their stocks ahead of the Christmas shopping season, with an increase in demand on items such as electronics, furniture, and recreational equipment.
In addition, some of the port barrier appeared to have cleared last month.
Meng Xianglong, founder of Heji Trade & Credit Research Centre, expected that China’s strong exports will extend until the end of the year or until the start of 2022, with some factories already fully booked until next year’s first quarter.