BEIJING, Sept 7 Reuters China39;s exports and imports fell in August, data showed on Thursday, as the twin pressures of sagging overseas demand and weak consumer spending squeezed businesses in the world39;s secondlargest economy.

While the trade numbers beat analysts39; expectations, they show China39;s manufacturing sector remains under significant pressure and that policymakers will need to focus on boosting domestic demand to shore up growth, after export orders and imported parts held back factory activity last month.

Exports dropped 8.8 in August yearonyear, customs data showed on Thursday, beating a forecast of 9.2 in a Reuters poll and off a 14.5 drop in July. Meanwhile, imports contracted 7.3, slower than an expected 9.0 decline and last month39;s 12.4 fall.

The economy is at risk of missing Beijing39;s annual growth target of about 5 as officials wrestle with a worsening property slump, weak consumer spending and tumbling credit growth, leading analysts to downgrade forecasts for the year.

The figures suggest the headwinds remain, despite some marginal improvement, said Zhou Hao, chief economist at Guotai Junan International. Looking ahead, whether China39;s trade growth has already hit the bottom will hinge on several factors, the most important of which is obviously domestic demand.

Beijing has announced a series of measures in recent months to shore up growth, with the easing of some borrowing rules last week by the central bank and the top financial…