China's August Exports Down 8.8% YoY... Decline Slows (Update)

China's export value in August failed to escape a negative trend compared to last year. However, the decline in exports slowed compared to the previous month.

On the 7th, the General Administration of Customs of China announced that the export value in August decreased by 8.8% year-on-year. This is somewhat improved compared to the double-digit declines recorded in June (-12.4%) and July (-14.5%). It also exceeded market expectations (-9.8%).

The decline in China's exports is attributed to the global economic slowdown and weakness in China's manufacturing sector. However, as the Chinese authorities gradually introduced stimulus measures such as liquidity supply, the manufacturing sector showed some improvement, leading to a moderation in the export decline after two months, according to some interpretations.

China's official manufacturing Purchasing Managers' Index (PMI) for August was 49.7, remaining below 50, indicating a continued phase of economic contraction, but it rose slightly compared to June and July.

In the market, although the Chinese authorities have implemented various measures, they are avoiding announcing large-scale stimulus packages, leading to growing expectations that it will be difficult to anticipate a recovery in the economy, including the labor market, in the near term.

Imports, which are directly related to domestic demand, decreased by 7.3% during the same period. The decline in imports in August also slowed compared to the previous month (-12.4%) and market expectations (-9.0%). The trade balance in August was $68.36 billion (approximately 91.13 trillion KRW), falling short of the previous month's figure ($80.6 billion) and market expectations ($78.0 billion).

This content was produced with the assistance of AI translation services.