Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

China's export, import growth likely eased in Aug on COVID-19 cases, supply bottlenecks: Reuters poll

EconomySep 06, 2021 01:21AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Containers are seen at the Yangshan Deep-Water Port in Shanghai, China October 19, 2020. REUTERS/Aly Song

BEIJING (Reuters) - China's export growth is expected to have moderated in August amid port congestion caused by fresh COVID-19 cases, a Reuters poll showed, while the pace of imports also slowed, highlighting the growing pressure on the world's second-largest economy.

The forecast slackening in overall trade add to a flurry of soft Chinese data since July and is likely to reinforce market expectations for more near-term support measures https://www.reuters.com/article/us-china-economy-policy-idUSKBN2F013X to revitalise the flagging economic recovery.

Exports are expected to have risen 17.1% in August from a year earlier, the median forecast in a Reuters poll of 31 economists showed on Monday, compared with growth of 19.3% in July. The data are due out on Tuesday.

Nomura analysts attributed the slower growth to a shift in consumption towards services in developed economies following their reopening on the back of rapid vaccine rollouts, and shipment disruptions at the Ningbo-Zhoushan port caused by the latest wave of local COVID-19 cases.

Offsetting some of this, a few analysts say, is the possible diversion of export orders back to China due to rising COVID-19 cases in Southeast Asia.

Imports likely rose 26.8% last month year-on-year, the poll also showed, compared with 28.1% growth in July.

The Chinese economy made a remarkably strong revival after the initial coronavirus-led slump last year, but momentum has come off over the past few months as businesses grapple with sporadic COVID-19 outbreaks, supply bottlenecks and higher raw material costs. Commodity prices remain elevated despite Beijing's attempts to cool them.

These factor drove China's manufacturing activity into contraction in August https://www.reuters.com/world/china/chinas-august-services-activity-slumps-into-contraction-caixin-pmi-2021-09-03 for the first time in nearly 1-1/2 years, a private survey showed on Wednesday.

The country appears to have largely contained the latest coronavirus outbreaks of the more infectious Delta variant, but it promptd measures including mass testing for millions of people as well as travel restrictions of varying degrees in August.

"If there's demand from the market, cutting reserve requirement ratios and even lowering interest rates are both viable options," Zeng Gang, vice director at National Institution for Finance and Development, told state-owned China Securities Journal in an interview.

Many analysts expect the People's Bank of China to deliver a further cut to the amount of cash banks must hold as reserves later this year to lift growth, on top of July's cut https://www.reuters.com/article/us-china-economy-rrr-cut-idUSKCN2EF0U4 which released around 1 trillion yuan ($6.47 trillion) in long-term liquidity into the economy.

China's export, import growth likely eased in Aug on COVID-19 cases, supply bottlenecks: Reuters poll
 

Related Articles

China's economic wobbles cast long shadow for Asia
China's economic wobbles cast long shadow for Asia By Reuters - Oct 19, 2021

By Chen Lin and Cynthia Kim SINGAPORE/SEOUL (Reuters) - China's economic setbacks have darkened the outlook for countries in its orbit, from South Korea to Thailand, as a sharp...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email