Our Usual Trade Statistics Health Warning

As always, don’t read too much into a single month’s economic statistics. China’s larger than expected drop in its trade surplus for August, largely because of higher imports of copper and crude oil, is neither confirmation of rebounding domestic demand nor some conspiracy to manipulate the numbers ahead of next week’s U.S. Congressional hearings on China’s exchange rate policy. Neither will it nor some vague talk of a government drive to boost imports do much to quieten China’s critics in Washington.