In China, economic woes continued through August, as the still-weakening manufacturing sector did little to bolster tumbling export numbers.
Data from the National Bureau of Statistics of China showed that the country's industrial output grew less than expected through last month – 6.1 percent rather than the projected 6.5 percent – which is a difference, in terms of the month's exports, of over $700 million, according to the Journal of Commerce (JOC). Once the hub of the world's manufacturing, China's stretch of economic sluggishness, it's worst since the global economic downturn, has ravaged both foreign and domestic demand for its goods.
Chinese imports and exports fall once again in August
In July, the value of China's exports fell 8.3 percent, and while August wasn't quite as bad, it certainly wasn't good either. Last month, the value of exports from China dropped once again, this time 5.5 percent. Throughout the summer, the total value of imports and exports experienced monthly drops as well. In June, the combined worth of imports and exports fell 1.2 percent, in July 8.2 percent and last month over 9 percent.
Imports, taken alone, were particularly bad. For the 10th month in a row, the value of goods flowing into China dropped, this time 13.8 percent year-over-year, according to Reuters. The continued slumps for both imports and exports left China with a trade surplus of $60.24 billion for August, much higher than forecasts of $48.20 billion.
And the stream of bad news out of Beijing isn't expected to end anytime soon.
"The economy is showing no sign of recovery," Ding Shuang, chief China economist at Standard Chartered, explained in a note, according to the JOC.
Beijing making efforts to reverse downturn
Still, the country's communist government is certainly making efforts to reverse the alarming trends concerning the world's second-largest economy. Since November, officials in Beijing have cut interest rates five times, most recently in August, The Associated Press reported. Additionally, last month, policymakers devalued the Chinese yuan. While word out of Beijing was the move was an attempt to achieve a more market-determined exchange rate, experts believe it was meant to stimulate exports.
August was, simply put, not a great month for China, and the prevailing belief is Beijing won't see one for sometime.
"Imports are much worse than expected … and are also a leading indicator for exports, as around half of China's exports are processing trade," noted Nie Wen, an analyst at Hwabao Trust, based in Shanghai, according to Reuters. "I'm not optimistic about the prospect of exports and it's unlikely China can achieve its export target this year."