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Well-known
China’s factory-gate prices in June saw the biggest fall in two years amid uncertainty in international trade and weak domestic demand.
According to figures released on July 9 by China’s National Bureau of Statistics, the producer price index for industrial products in June fell by 3.6 percent compared with the same month in 2024—worse than a 3.3 percent drop in May, and the biggest annual decline since July 2023.
The month’s purchasing price index for industrial products fell by 4.3 percent year over year, bigger than the 3.6 percent drop in May, and the sharpest decline since August 2023.
According to Dong Lijuan, statistician at the National Bureau of Statistics, the producer price index deflation in June was driven by cheaper energy prices, uncertainties in international trade, and hot and wet weather that drove down the price of building materials.
Sectors that rely on exports faced more downward pressure in prices, she said.
“The prices of computers, communication equipment, and other electronic equipment in June dropped by 0.4 percent [compared to May], the prices of electrical machinery and equipment fell by 0.2 percent, and textile prices fell by 0.2 percent,” she said.
In annual terms, the prices of computers, communication equipment, and other electronic equipment fell by 2.3 percent.
China’s factory activity shrank for a third month in a row in June, albeit at a slower pace, with employment and new export orders still languishing.
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According to figures released on July 9 by China’s National Bureau of Statistics, the producer price index for industrial products in June fell by 3.6 percent compared with the same month in 2024—worse than a 3.3 percent drop in May, and the biggest annual decline since July 2023.
The month’s purchasing price index for industrial products fell by 4.3 percent year over year, bigger than the 3.6 percent drop in May, and the sharpest decline since August 2023.
According to Dong Lijuan, statistician at the National Bureau of Statistics, the producer price index deflation in June was driven by cheaper energy prices, uncertainties in international trade, and hot and wet weather that drove down the price of building materials.
Sectors that rely on exports faced more downward pressure in prices, she said.
“The prices of computers, communication equipment, and other electronic equipment in June dropped by 0.4 percent [compared to May], the prices of electrical machinery and equipment fell by 0.2 percent, and textile prices fell by 0.2 percent,” she said.
In annual terms, the prices of computers, communication equipment, and other electronic equipment fell by 2.3 percent.
China’s factory activity shrank for a third month in a row in June, albeit at a slower pace, with employment and new export orders still languishing.
China Reports Worst Producer Deflation In 2 Years Amid Ongoing Trade Uncertainty | ZeroHedge
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