China’s trade gained pace in August, though imports missed expectations, a sign that domestic demand remains tepid as the world’s second-largest economy faces mounting pressure to rebalance trade.

Exports grew 25% in US dollar terms in August from a year earlier, official customs data showed Tuesday, in line with Reuters-polled analysts’ forecast, quickening from 23.9% surge the previous month.

Imports rose 28.2% last month, missing economists’ estimates of 30% in a Reuters poll, but gathering momentum from 27.5% in July. As a result, China’s trade surplus swelled to $119.09 billion from $112.5 billion in July. (CNBC – Continue Reading)

Japan’s economy grew at a faster clip in the second quarter than initially estimated while wages jumped the most in nearly three decades in July, supporting the case for a widely expected Bank of Japan interest-rate hike next week.

Gross domestic product expanded 1.4% from the previous quarter on an annualized basis, up from an earlier estimate of 1.1%, according to a report by the Cabinet Office Tuesday. (BBG – Continue Reading)

The fall takes sentiment back towards the deeply pessimistic levels seen earlier in the year. Both fuel prices and interest rates again look to be driving the move.

Local pump prices have lifted back above $2/litre for the first time since April, reflecting higher global energy prices and the end of the temporary halving in fuel excise tax.

Meanwhile, a stronger than expected monthly CPI read in July has stoked fears that the RBA will raise interest rates further in coming months. This has weighed on consumer expectations for finances and the economy. It has likely also added to unease about the continued weakening in housing markets. (Westpac – Continue Reading)

British retail sales growth slowed to a four-month low in August as a surge driven by record-hot weather earlier in the summer faded, figures from the British Retail Consortium trade body showed on Tuesday.

The BRC said that total retail sales grew by an annual 0.7% in August, down from 1.3% in July, while like-for-like growth — which adjusts for changing floorspace – slowed to 0.5% from 1%.

"Summer spending started in May this year, as ⁠earlier higher temperatures pulled forward related purchases. And while the heat and holiday spending continued to drive food, drink, health and beauty sales into August, most other categories couldn't sustain another month of growth," said Linda Ellett, head of consumer, retail and leisure at survey sponsors KPMG. (RTRS – Continue Reading)