China’s factory gate deflation worsens on suffering demand China factory gate deflation worsens on suffering demand

China’s factory gate deflation worsens on suffering demand

China factory gate deflation worsens on suffering demand

China’s producer prices recorded a historic drop in more than four years. This indicated that the country’s manufacturing sector is struggling as the novel coronavirus crisis curbed trade flows and dragged global demand.

The producer price index (PPI) dropped 3.7% in May from a year earlier, the National Bureau of Statistics (NBS) said in a statement on Wednesday. The figure came to be the worst drop since March 2016, beating the 3.3% drop speculated by analysts. This also surpassed the 3.1% decline monitored in April.

“Negative reading for PPI is likely to be a new normal in the foreseeable future,” said Tommy Xie, China economist at OCBC Bank in Singapore.

The coronavirus pandemic has dragged trade to China’s key export markets including the United States and Europe. This has led to a dimmer outlook for manufacturing investment and jobs in the world’s second-biggest economy.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?