BEIJING (Reuters) – China’s factory gate prices declined at the fastest pace in more than three years in September, reinforcing the case for Beijing to unveil further stimulus as manufacturing cools on weak demand and U.S. trade pressures.
September’s producer price index (PPI), considered a key barometer for corporate profitability, dropped 1.2% year-on-year, National Bureau of Statistics (NBS) data showed on Tuesday. It marked the steepest factory price decline since July 2016 but matched forecasts in a Reuters survey of analysts.
Outlook - Tensions - Trade - War - Beijing
The grim outlook is unlikely to change even as tensions in the year-long trade war between Beijing and Washington have eased somewhat. U.S. President Donald Trump said on Friday the two sides had reached agreement on the first phase of a deal and suspended a tariff hike, but officials said much work still needed to be done.
Some analysts expect China’s overall GDP growth rate to slip below the government’s 6.0%-6.5% target range this year.
Trade - Data - Monday - Contractions - Exports
Trade data released on Monday showed contractions in both exports and imports as U.S. tariffs implemented on Sept. 1 came into effect, underscoring the continued impact of the bilateral dispute.
China has taken a cautious approach in dealing with the slowing economy. Stimulus to date has largely avoided dramatic increases in government spending and the central bank has also mainly used the reserve requirement ratio for banks instead of sweeping interest rate cuts.
Bank - Governor - Yi - Gang - September
Chinese central bank governor Yi Gang said late in September there was no urgent need to implement...
Wake Up To Breaking News!