China's PPI down 5.4% in June
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E-mail Xinhua, July 10, 2023
A worker is busy on the production line at an air conditioner company in Liuzhou, Guangxi Zhuang autonomous region, on June 2, 2023. [Photo/Xinhua]
China's producer price index (PPI), which measures costs for goods at the factory gate, went down 5.4% year on year in June, the National Bureau of Statistics (NBS) said Monday.
The decrease expanded by 0.8 percentage points from that in May. On a monthly basis, the PPI edged down 0.8%, narrowing from the 0.9% drop a month earlier.
NBS statistician Dong Lijuan attributed the declines to falling prices in commodities, including oil and coal, and a high comparison base during the same period last year.
In June, 25 of all the 40 surveyed industrial sectors reported price declines, down from 26 in the previous month.
The PPI for industries related to oil and gas extraction, chemicals production, coal mining and washing registered wider declines ranging from 14.9% to 25.6% last month. The ferrous and non-ferrous metal industries saw their price levels down by 16% and 7.2%, respectively.
However, the price indexes were mildly higher for cultural products, plane manufacturing, electricity and heating, textile, and garment industries last month.
In the first half of the year as a whole, the average PPI dropped 3.1% from the same period in 2022.
Despite the falling PPI, there have been increasing signs of improving factory activities and strengthening economic momentum in China. The purchasing managers' index for the manufacturing sector, an advanced economic indicator released recently, ended a three-month decline to stand at 49 in June.
Analysts believe that China's overall economic recovery has seen stronger driving forces and a more solid foundation.
According to official data, the Chinese economy has shown a clear momentum of rebound and improvement with a 4.5% GDP growth in the first quarter. In the second quarter, the economy is expected to further pick up pace.
On Monday, the NBS also said that China's consumer price index came in flat in June compared with the same period last year, lower than the 0.2% increase in May. On a monthly basis, the prices were slightly down by 0.2%.
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