China: Imports and exports contract again – Swissquote

By FXStreet FXStreet (Delhi): Arnaud Masset, Market Analyst at Swissquote, notes that the negative news from China is becoming a routine now as its exports and imports continued to slump in August.

Key Quotes

“Both external and internal demand remained weak in August. Exports slumped for the second straight month, contracting 5.5%y/y in dollar term but still better than the 6.6% fall expected by the market. Meanwhile, imports came in worse than expected and contracted 13.8%y/y in dollar term versus -7.9% expected. All in all, trade balance printed at $60.24bn versus $48bn expected and $43.03bn previous read.”

“The data highlighted weak global demand during the summer months and adds to concerns about China’s ability to reorganize its economy toward a domestic generated growth.”

“However, we can reasonably assume that the month of August was a bit “particular” this year. The month of September will therefore be key in determining whether this summer weakness will persist until the end of 2015.”
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Source:: FX Street