China’s foreign trade seems to have improved slightly in August

China’s foreign trade is likely to have improved slightly in August as trade data from Taiwan and Korea indicated a few signs of rebound in Asia’s electronics supply chain. The export order index of China in the PMI reports also rebounded in August, although it remains below 50.

Thus the country’s merchandise exports to expand 3 percent year-on-year in terms of renminbi in August, said Societe Generale in a research note. This would be slightly higher than the 2.9 percent year-on-year growth seen in July and suggesting above-average month-on-month growth for this month.

Meanwhile, imports are expected to have expanded 0.2 percent year-on-year in renminbi terms, as compared with the contraction of 5.6 percent year-on-year in July. But this should be majorly attributable to a positive base impact and renminbi depreciation, while month-on-month growth is likely to be a bit below average.