China’s factory gate prices fell in May due to weak global demand

Customers buy items at a grocery store on December 9, 2016 in Hangzhou, China.

VCG | Getty Images

Factory gate prices in China have been hit by weak global demand due to the coronavirus pandemic, knowledge confirmed on Wednesday.

The producer worth index (PPI) fell 3.7% from a yr earlier in May, in accordance to knowledge from the nation’s National Bureau of Statistics. That was sharper than the three.3% decline anticipated by economists polled by Reuters.

Negative PPI is anticipated to persist for a while to due weak demand, mentioned Teck Kin Suan, United Overseas Bank’s head of analysis. On Sunday, customs knowledge confirmed exports fell 3.3% in May from a yr earlier.

In May, China’s shopper worth index rose 2.4% from a yr earlier, that is lower than the two.7% rise economists polled by Reuters had anticipated.

Economists at Capital Economics mentioned in observe after the info launch {that a} ramp-up in coverage stimulus to help the economic system will doubtless assist ease worth pressures in the months forward.

“A pick-up in infrastructure construction looks set to drive a rebound in producer prices, which are highly correlated with commodity prices,” mentioned Julian Evans-Pritchard and Martin Rasmussen.

However, in addition they mentioned meals worth inflation will decline additional as pork provide will increase.

Last month, meals prices have been 10.6% larger than a yr in the past, however down 3.5% from April as manufacturing recovered. Pork prices rose 81.7% in May from a yr in the past, however have been down 8.1% from April.

China’s hog herds have been decimated by the African Swine Fever virus, however the nation has been importing extra of the protein. In April, China imported a report 400,000 metric tons of pork.

Source hyperlink

What do you think?

Written by Business Boy


Leave a Reply

Your email address will not be published. Required fields are marked *



Hertz’s stock may look low cost, but Cramer cautions against buying it

WHO’s chief scientist says there’s a ‘very real danger’ of a second wave of coronavirus as economies reopen