China exports soar faster than expected in August

China’s exports soared at a faster pace than expected in August, driven by a resurgence in global demand for goods from the world’s second largest economy, according to new figures released today.

Shipments from the globe’s biggest exporter jumped 25.6 per cent annually in August, gathering momentum from July’s 19.3 per cent gain.

Analysts polled by Retuers had expected growth of 17.1 per cent.

Higher than expected growth came despite rising Covid cases in the country disrupting normal operations at China’s largest shipping ports. 

Higher input prices triggered by severe global supply chain snarl ups prompting shortages of raw materials has constrained China factory output.

The latest Caixin China manufacturing PMI shows manufacturing activity in the country contracted in August, dipping to 49.2 from 50.3 in July. A reading below 50 indicates a majority of firms reported activity contracting.

The decline was primarily driven by the “reappearance of Covid-19 clusters in several regions… deal[ing] a blow to manufacturing activity,” Dr. Wang Zhe, senior economist at Caixin Insight Group, said.

Imports grew 33.1 per cent in August, again, higher than an expected 29.8 per cent increase. China’s trade surplus widened to $58.34bn in the same month, up from $56.58bn in the previous month.

Stretched logistics firms, caused by intense worker shortages and Covid cases disruption normal functioning, has resulted in piles and piles of finished goods lying idle at Chinese ports.