China August trade surplus up 77.8% on-year at record US$49.8b

81d88806369b5aee2595fe6383bd2ae2

China’s trade surplus surged to a record US$49.8 billion in August, official data showed on Monday (Sep 8), as imports surprisingly fell for a second straight month while export growth slowed.

Imports fell 2.4 per cent year-on-year to US$158.6 billion, the General Administration of Customs announced, while exports increased 9.4 per cent to US$208.5 billion. Imports, which had declined 1.6 per cent in July, worsened further in August and failed to match the median forecast of a 2.7 per cent increase in a Wall Street Journal survey of 15 economists.

Export growth slowed from July’s gain of 14.5 per cent, but beat the median expectation of a gain of 9.2 per cent. The surplus, meanwhile, bested the previous all-time high of US$47.3 billion recorded last month. It also exceeded the median forecast of US$42 billion.

The results came on the heels of data showing softness in China’s economy during the current third quarter, leading economists to stress that authorities will likely take further steps to boost growth. Growth in manufacturing activity slowed in August, two closely watched surveys showed last week. In July, China’s bank lending plunged and growth in key indicators such as industrial production, retail sales and fixed asset investment slowed from the previous month.

PROPERTY WOES

Analysts say that China’s growth outlook is being weighed down by trouble in the country’s huge property sector – where new home prices in August posted their fourth consecutive month-on-month decline – and the waning effect of stimulus measures taken earlier this year to juice growth. “We expect the government to continue to roll out small, targeted easing measures to offset the ongoing property market correction,” Nomura economists said in a note reacting to the trade data.

China’s economy expanded a stronger-than-expected annualised 7.5 per cent in the April to June quarter, picking up from 7.4 per cent during January to April, which had been the worst since a similar expansion in July to September 2012.

The weak performance in the first quarter this year prompted authorities from April to begin introducing measures to boost economic growth through steps such as tax breaks for small enterprises, targeted infrastructure spending and lending incentives in rural areas and for small companies.

China’s property woes can be seen reflected in the past two months of weak imports, said Julian Evans-Pritchard, China economist at Capital Economics. “Slower import growth reflects cooling investment, particularly in the property sector, which has weighed on commodity demand,” he said in a note after the trade data release. “That said, the weakness in commodity imports has also been magnified by the sharp falls in commodity prices in recent months.”

Highlighting China’s importance as a global growth engine, the August trade data came as Japan announced earlier Monday that its economy, the world’s third largest, shrank a revised 7.1 per cent on an annualised basis in the April to June quarter – larger than earlier reported – after a sales tax increase dented consumer spending.

China in March set its annual growth target for 2014 at about 7.5 per cent, the same objective as last year. The economy grew 7.7 per cent in 2013, matching 2012’s result which was the worst since 1999.

 

Source : Channel News Asia | September 8, 2014

Thomas D’Innocenzi

Advertisements

About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
This entry was posted in Business, Economy, Global Sourcing and tagged , , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s