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BEIJING – China’s factory gate prices fell at the slowest pace since February last month, official data showed on Monday, indicating that China’s manufacturing sector is still seeing a steady recovery from the COVID-19 shock.
The producer price index (PPI) has fallen by 0.4% over a year earlier, the National Bureau of Statistics said in a statement. According to a media forecast in a Reuters poll, the index would fall by 0.8%, after falling by 1.5% in November.
The data comes as manufacturing activity in the second-largest economy in the world expanded in December, but at a slightly slower pace amid higher raw material costs.
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On a monthly basis, PPI rose 1.1% in December after rising 0.5% in November, indicating that corporate profitability has improved.
Raw material prices fell by 1.6% compared to a year ago, compared with a decrease of 4.2% in the previous month.
Prices of China’s factory gate fell at the slowest pace since February last month, official data showed on Monday, indicating that the manufacturing sector in China is still seeing a steady recovery from the COVID-19 shock.
The industrial sector in China suffered an impressive setback due to the coronavirus shock, thanks to surprisingly strong exports, which resulted in a strong economic recovery. But rising global infections – and fresh coronavirus curbs in many countries – could cloud the outlook for Chinese manufacturers.
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The consumer price index (CPI) rose by 0.2% from a year earlier in December, after easing by 0.5% in November, the first drop since October 2009. Analysts in the Reuters poll have seen an increase of 0.1% forecast.
Food prices rose by 1.2% compared to a year ago, compared to a decline of 2.0% in the previous month.