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June had seen China’s factory gate prices falling for five consecutive months. This could be attributed to the novel coronavirus crisis dragging industrial demand. However, improvements monitored in some parts of the sector indicate a gradual economic recovery.
The producer price index (PPI) recorded a 3.0% decline in June from a year earlier, China’s National Bureau of Statistics (NBS) said in a statement on Thursday. The reading came milder than the 3.2% drop predicted by analysts and lower than the 3.7% decline recorded in May.
However, the index jumped 0.4% from a month ago as signs of improvement were seen in the manufacturing sector. More so, it recovered from a 0.4% decline in May.
“The change was driven by an across-the-board increase in raw materials, manufactured goods, and consumer goods price inflation,” said Martin Rasmussen, China Economist at Capital Economics.
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China’s industrial firms had seen an increase in profits for two consecutive months. This came as the most rapid pace ever recorded in over a year, suggesting that the country’s recuperation from the novel coronavirus pandemic ...
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