China exports and imports experience record highs in September, according to a spokesperson for the national customs agency interviewed by Reuters.
China posted a record amount of goods in yuan-denominated terms in September, according to Reuters.
The agency reported a 10.2% increase in China’s exports in the third quarter from a year ago to 5 trillion yuan ($742.9 billion).
Aside from China exports, imports increased from 4.3% to 3.88 trillion yuan during that time, data shows.
For September, in U.S. dollar terms, China’s exports increased by 9.9% from a year ago. This is around the expectations of 10% by analysts, according to a Reuters poll.
Imports rose by 13.2% in US dollar terms, far above the 0.3% forecasted by the Reuters’ poll.
Global demand for Chinese medical supplies contributed to the increase in exports in the last several months.
As early as June, economists already predicted that China would be able to recover faster than the rest of the world.
China could carry out a “very impressive” economic growth but the US is its biggest risk, according to Michael Spencer, Deutsche Bank’s chief economist and head of research for Asia Pacific.
The analyst commends the improving Chinese recovery. It registered a growth of 5%-6% quarter on quarter in April-June, after a contraction in the previous three months.
“The domestic demand part of the Chinese economy has recovered well,” said Spencer during an interview on CNBC’s “Squawk Box Asia.”
Spencer pointed out that “a broad range of indicators” — such as auto and property sales — are “returning to normal” in China. Moreover, the country’s exports have also manifested better recovery. However, Spencer warned that it could get “a lot worse” in the next few months due to the economic weakness in China’s major export destinations.
Services industry
The services industry in China also saw growth in May 2020. The Caixin/Markit services Purchasing Managers’ Index (PMI) increased to 55.0 in April from 44.4 in April. It reached the highest level since late 2010. The 50-mark splits growth from contraction on a monthly basis.
The growth of the services sector in China is attributed to a sharp increase in domestic new business though export orders dropped for the fourth month in a row. Moreover, the services sector in China continues to be a crucial job generator and accounts for about 60% of the economy.
Measurements for employment also continued to contract but not at a fast pace. “Employment in the services sector remained worrisome,” said Wang Zhe, senior economist at Caixin Insight Group.
Retail sales in China
China’s retail sales have seen growth for the first time in 2020 when consumers increased their spending in August.
Retail sales increased by 0.5% in August from a year ago, according to China’s National Bureau of Statistics. This was regarded as the first positive report for the year so far. Meanwhile, sales of communication equipment increased by 25.1% from a year ago and that of autos by 11.8%.
Retail sales for the first eight months of the year declined by 8.6% from a year ago, according to the bureau. Online retail sales of physical goods rose by 15.8% during that time, the data suggests.
The unemployment rate as assessed by the official survey of cities was 5.6%, 0.1 percentage points lower than in July. Moreover, industrial production rose by 5.6% in August from a year ago.
