BEIJING – Factory-gate prices in China fell last month at their slowest pace since February, official data showed on Monday, suggesting that China’s manufacturing sector continues to experience a steady recovery from the COVID shock. 19.
The producer price index (PPI) fell 0.4% from the previous year, the National Bureau of Statistics said in a statement. The index is expected to fall 0.8%, according to a median forecast from a Reuters poll, after falling 1.5% in November.
The data comes as manufacturing activity in the world’s second largest economy grew in December, albeit at a slightly slower pace due to rising raw material costs.
CHINA TO FIGHT AGAINST “UNJUSTIFIED” TRADE AND FOREIGN AFFAIRS RIGHTS
On a monthly basis, the PPI rose 1.1% in December after rising 0.5% in November, indicating improving corporate profitability.
Commodity prices fell 1.6% from a year ago, compared to a 4.2% drop in the previous month.
China’s industrial sector has seen an impressive rebound from the coronavirus shock thanks to surprisingly strong exports, helping to fuel a robust economic recovery. But rising global infections – and new coronavirus brakes in many countries – can cloud the outlook for Chinese manufacturers.
GET FOX BUSINESS ON THE ROAD BY CLICKING HERE
The Consumer Price Index (CPI) was up 0.2% from a year earlier in December, after falling 0.5% in November, the first drop since October 2009. Analysts poll Reuters had forecast a rise of 0.1%.
Food prices rose 1.2% from a year ago, compared to a 2.0% decline the month before.