Home » China’s May PPI Falls 4.6% YoY, Biggest Drop in Seven Years – WSJ

China’s May PPI Falls 4.6% YoY, Biggest Drop in Seven Years – WSJ

by admin
China’s May PPI Falls 4.6% YoY, Biggest Drop in Seven Years – WSJ

China’s PPI in May fell by 4.6% year-on-year, falling for eight consecutive months, and the decline was further expanded from the previous month, expanding for the fifth consecutive month. The decline was also larger than expected, and it was the largest decline since February 2016.

Updated June 9, 2023 at 17:40 CST

According to data released by the National Bureau of Statistics of China this morning, the producer price index (PPI) fell by 4.6% year-on-year in May, falling for eight consecutive months, and the decline was further expanded from the previous month, expanding for the fifth consecutive month, and the decline was also greater than expected , which was the largest drop since February 2016.

Prior to this, the PPI in April fell by 3.6% year-on-year, an increase of 1.1 percentage points from the previous month.

In March, PPI fell by 2.5% year-on-year, falling for six consecutive months.

According to WIND, PPI in February 2016 fell by 4.9% year-on-year.

According to data released by the National Bureau of Statistics of China this morning, the producer price index (PPI) fell by 4.6% year-on-year in May, falling for eight consecutive months, and the decline was further expanded from the previous month, expanding for the fifth consecutive month, and the decline was also greater than expected , which was the largest drop since February 2016.

Prior to this, the PPI in April fell by 3.6% year-on-year, an increase of 1.1 percentage points from the previous month.

In March, PPI fell by 2.5% year-on-year, falling for six consecutive months.

See also  Samsung Electronics' Q1 net profit plunges 86% - Wall Street Journal

According to WIND, PPI in February 2016 fell by 4.9% year-on-year.

Economists surveyed by The Wall Street Journal predicted that China’s PPI in May is expected to fall by 4.3% year-on-year.

The National Bureau of Statistics also announced that the PPI fell by 0.9% month-on-month in May; the month-on-month decrease was 0.5% in April, and remained flat for the second consecutive month in March.

Cumulatively, the PPI fell by 2.6% year-on-year from January to May; the previous year-on-year decrease was 2.1% from January to April.

The National Bureau of Statistics explained that in May, international bulk commodity prices fell as a whole, and domestic and foreign industrial product market demand was generally weak. In addition to the high comparison base in the same period last year, PPI continued to decline both month-on-month and year-on-year.

From a month-on-month perspective, the PPI fell by 0.9 percent, an increase of 0.4 percentage points from the previous month. Among them, the price of means of production decreased by 1.2%, and the rate of decline expanded by 0.6 percentage points; the price of means of living decreased by 0.2%, and the rate of decline narrowed by 0.1 percentage point.

The decline in international crude oil and major non-ferrous metal prices led to a decline in domestic prices, of which oil and natural gas mining prices fell by 2.1%. The supply of coal, steel, cement and other industries is generally sufficient, but the demand is weak, and the prices are all falling. The prices of the equipment manufacturing industry fell slightly, and the prices of the automobile manufacturing industry fell by 0.2%. The price of electricity and heat production and supply industry increased by 0.1%.

See also  Lastminute.com archives the Covid scandal: profits and reimbursed allowances

From a year-on-year perspective, PPI fell by 4.6%, and the rate of decline expanded by 1.0 percentage points from the previous month. Among them, the price of means of production decreased by 5.9%, and the rate of decline expanded by 1.2 percentage points; the price of means of living changed from an increase of 0.4% in the previous month to a decrease of 0.1%.

Among the main industries, the price of oil and natural gas mining industry fell by 19.1%, and the rate of decline expanded by 2.8 percentage points; the price of coal mining and washing industry fell by 13.1%, and the rate of decline expanded by 3.8 percentage points. Manufacturing auto prices fell 1.1 percent. In addition, the price of electricity and heat production and supply industry increased by 1.6%.

According to statistics from the Bureau of Statistics, in the 4.6% year-on-year decrease in PPI in May, the carryover effect of price changes in the previous year was about -2.8 percentage points, and last month was -2.6 percentage points; the impact of new price increases was about -1.8 percentage points, Last month was -1.0 percentage points.

(This article is from Dow Jones Chinese Financial News)

Related Reading:

China’s May CPI up 0.2% YoY, below expectations

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy