More Good News For China's Economy

The latest data out of China adds to signs that its economy is recovering.

Trade growth picked up again in August with exports rising 7.2% on the year in August, up from 5.1% in July and beating expectations for 5.5%.

Export growth to the U.S. climbed to 6.1% from 5.3% in July. And exports to EU rose 2.5%, after increasing 2.8% in July.

Import data missed expectations rising 7% and was down from 10.9% the previous month.

"Though import growth softened in a bit in August from July, it's still much stronger than the negative readings in May and June," wrote Bank of America's Ting Lu.

He also pointed out the softer import data could be explained by 1. pent up demand in July, and 2. a slowdown in the purchase of raw materials after a jump in prices in August.

Meanwhile, the trade surplus widened to $28.6 billion, from $17.8 billion the previous month.

This comes after the Chinese manufacturing sector has been showing signs of recovery. China's Q2 GDP slowed to 7.5% but premier Li Keqiang calmed markets by saying 7.5% would be the growth floor for 2013.