Greater stability in China’s economy due to export growth.

China’s exports fell 8.8% from last year, and imports fell 7.3%. Significantly lower percentages than the decrease in July. Economist Rayond Yeung mentions “Improving China trade data is an early sign of stabilizing growth”.

It is suggested that global demand is starting to recover, providing some hope for China’s trade. There was a double-digit decline in shipments from China to Europe, but there was an improvement in American trade, going from 23.1% in July to 9.5% in August.

On the other hand, the growth in the level of imports was a sign that the slowdown in domestic demand may be bottoming out. In recent weeks, China’s government has implemented a series of incremental measures to revive business confidence and help the weakened property market, a key source of economic stress.

“Imports are likely to recover further in the coming months,” economists at Capital Economics Ltd. wrote in a research note. “Further progress on existing housing projects and increased infrastructure spending are beginning to drive construction activity.”

Other recent data has given some reason for cautious optimism. While an official indicator of manufacturing activity contracted for the fifth consecutive month last month, service activity is on the decline, a sign that consumers are spending moderately.