China's dropping factory gate prices suggest broader economic slowdown

China's dropping factory gate prices suggest broader economic slowdown

In May, China's producer price inflation went down for the third straight month on sliding prices of raw materials, indicating a broader decline in economic activity as revenues are squeezed by slackening domestic demand as well as soaring financing costs.

Descending factory gate inflation in the world's number two economy could appear to be be a further concern for global major banks such as the Fed and ECB, both puzzling over why domestic prices have been still sluggish notwithstanding improving economic surge.

In May, China's producer price index jumped 5.5% from the previous year, as the National Bureau of Statistics informed on Friday, unlike an expected revenue of 5.7 percent and also slower than April’s 6.4% soar.

A renaissance in the country’s steel industry has been a powerful driver of the world's number two economy for recent quarters, assisting to generate the strongest revenue surge in years and also contributing to a reflationary pulse in the global manufacturing sector.

Similar

Japan expects USA to get back to TPP

Japan generally appreciates an upbeat stance by America toward an Asia-Pacific trade pact, although Tokyo indicated that changing the agreement at this point might appear to be extremely difficult…

UK Inflation Report Hearings

The Bank of England’s Governor and several members of the Monetary Policy Committee will testify on inflation and economic outlook before the Parliament’s Treasury Committee at 12:00 MT time on February 20…

gbp
Japanese exports go up

Flourishing sales of electronics and vehicles enabled Japan to demonstrate a 14th straight month of surge in January, although manufacturers' business confidence slumped due to fears of the soaring Japanese yen, which heavily affects an export-led…

Popular

Yen climbs up in Asia trade

On Friday, the Japanese yen leapt in Asia on safe-haven demand because political turmoil in Brazil reached risk sentiment and financial markets became cautious ahead of the weekend…

Pound tumbles vs yen

On Tuesday, the British pound sank versus the Japanese yen after a suspected terrorist attack at a concert in Manchester, while the common currency hovered close to a six-month peak versus the greenback after German Chancellor Angela Merkel told that the…

promotions you can be interested in

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera