China shipments outperform analysts expectations for August
China‘s exports surpassed expectations in August by growing at a quicker rate thanks to global demand which took some pressure of the country’s economy.
Having been the first major economy to recover after the pandemic, China stalled as the Delta variant took a hold throughout the country.
Additionally high material costs, a slowdown in factory activity and other factors became concerning.
Shipments from China, the largest exporter in the world, rose by 25.6% in August year-on-year, rising from a 19.3% increase the month before, data revealed on Tuesday, suggesting some strength in the industrial sector of the second largest economy in the world.
Analysts forecasted growth of 17.1%, as per Reuters.
“The hot season for Christmas came earlier than previous years,” said Xing Zhaopeng, senior China strategist at Australia and New Zealand Banking Group Ltd. in Shanghai.
“It will remain strong before November,” he added.
Exports from countries close by also showed signs of improvement in August, as South Korean shipments grew on strong demand.
The breakdown of shipments showed increases across the board.
“In particular, the rebound in Chinese-made consumer goods such as electronics, furniture and recreational products possibly reflected retailers in advanced economies replenishing their inventories ahead of the Christmas shopping season,” said Sheana Yue, assistant economist at Capital Economics.