MNI BRIEF: China August Exports Slowed To 4-mth Low; +7.1% Y/Y

China's export growth slowed to a 7.1% year-on-year pace in August, down from the previous 18.0% increase and far behind the market forecast of 13.0%, China Customs data showed on Wednesday. The slowdown, a result of a weaker external demand, was also impacted by a high base effect and the sharp depreciation of yuan (down 2.25%) during the month.

Imports rose 0.3% in August, decelerating from the 2.3% growth in July and missing the consensus for a 1.2% gain, the data showed. High base effects and falling commodity prices were primary reasons for the slide. Exports in the first eight months reached USD2.38 trillion, up 13.5%, while imports grew 4.6% to USD1.81 trillion. The trade surplus over the first eight months of the year was USD560.52 billion, with August contributing USD79.39 billion.

The European Union ranked as the biggest buyer, with imports from China up 18.4y/y in the Jan-Aug period. The United States placed second, with a 12.2% gain. Imports from the US increased 1.3% in the first eight months, and those from the EU fell 6.2%.