The economies of China and Europe are finally showing signs of a pickup. Chinese imports and exports rebounded in July, with imports up 10.9 percent year-over-year, well above expectations of a gain of about two percent.
Especially welcome was a surge in iron ore and crude oil. Copper imports were up 8 percent as well, while exports were up 5.1 percent respectively after dropping in June, also well above expectations of a three percent gain.
In a particularly encouraging development, exports to the U.S. were up 5.3 percent; European shipments were up by 2.8 percent.
These figures support the thesis—which we have discussed this week— that the U.S. recovery is a help to China, and that even Europe is now showing improvement. July manufacturing numbers in Europe were the highest in two years.
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