Daishi Capital – Evidence that domestic demand in China may be on the mend emerged with news that imports into the world’s second largest economy surged during the month of September.
The country’s exports came in better than expected too with a 15.3% gain on the same month in 2013, beating expectations for an 11.8% gain by a comfortable margin.
“The export data was encouraging i its own right but it was the import numbers that were in particular focus since they pointed to a recovery in domestic consumption, something China needs to achieve if it is to preside over a more balanced, less export-driven economy.” said an Daishi Capital emerging market analyst.
Imports rose 7% against consensus forecasts of a decline of 2.7% after the measure fell 2.4% in August.
The positive figures are the latest contradictory indicator for China’s economy, a key driver of global growth. Customs spokesman Zheng Yuesheng attributed the improvement to major economies recovering and external demand strengthening. “The good momentum is expected to continue in the fourth quarter,” he added.
Worries have mounted over China’s ability to keep its economy on an even keel while rooting out the excesses in its real estate market and its loosely regulated so-called “shadow banking” system where many commentators believe the greatest risks to the economy lie.
“Some commentators have gone hoarse calling for a ‘hard-landing’ for the Chinese economy but Beijing continues to defy the odds and the country continues to post growth figures largely in line with its own targets,” said the “Daishi Capital” analyst.
The data brought the country’s trade surplus down to $ 31 billion against a record $ 49.8 billion in August. Imports from commodity countries including Russia, ASEAN and South Africa posted strong growth showing that demand for natural resources may be on the rise.
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