BEIJING : China's export growth likely lost steam in August amid weakening global demand, while imports were also seen slowing due to sluggish consumption and a property crisis, raising concerns about economic momentum, a Reuters poll showed on Monday.

Exports in August were expected to have risen 12.8 per cent from a year earlier, according to the median forecast of 26 economists in the poll, after growing 18.0 per cent in July.

The double-digit growth suggested booming exports remained one of the major drivers of the world's second-biggest economy, but analysts expect them to slow as surging inflation cripples overseas demand and China's zero-COVID policy disrupts production and business activity.

"We see signs of slowing export momentum in August. Domestically, trade-related cargo throughput in China's eight major ports (including imports and exports) increased 0.9 per cent year-on-year in August (till 20th) versus 14.7 per cent in July," Citi analysts said in a note.

Both of the official and private-sector factory activity surveys showed their new export order sub-indexes remained in contraction last month, pointing to a downturn in exports.

Imports were forecast to have risen 1.1 per cent, the poll showed, compared with 2.3 per cent in July.

South Korea's exports to China, a leading indicator for China's imports, extended losses for a third month in August.

But Goldman Sachs analysts expected import growth to bounce back to 5 per cent.

"Import growth would be supported by more working days, although this could be partially offset by lower commodity price inflation," Goldman Sachs said.
Source: CNA
#China