China's imports and exports fall as trade slump persists

The news: China's trade slump is persisting, with exports dropping 8.8% year on year in August, slightly outperforming forecasts.

The numbers: The 8.8% decline was better than the 9.2% predicted by a Reuters poll of economists, while imports fell 7.3%, beating expectations of a 9% contraction. Factory activity fell for a fifth straight month in August, according to recent PMI figures. China recorded a trade surplus of USD68.36 billion ($107.3 billion) in August, undershooting forecasts of USD73.80 billion and down from July's USD80.6 billion figure.

The context: China's post COVID-19 recovery has been marred in recent months by liquidity issues in its property sector, weak consumer spending and poor credit growth. China has unleashed a number of policy measures to support its sputtering economy, including easing borrowing rules and relaxing home purchase restrictions. China's property sector accounts for about a quarter of its economy.