China’s Industrial Activity Suffers, PPI Remains Flat in June - Forex News by FX Leaders
Weak China Data

China’s Industrial Activity Suffers, PPI Remains Flat in June

Posted Wednesday, July 10, 2019 by
Arslan Butt • 1 min read

China’s PPI stayed flat YoY in June, according to data released by the National Bureau of Statistics, coming in lower than May’s rise of 0.6% and the forecast which was for a 0.3% rise.

Produced price index (PPI) is a key measure of industrial demand, and the recent cooling down renews worries about a slowdown in the Chinese economy on the back of the ongoing trade war with the US. June’s PPI was the lowest reading since August 2016.

Meanwhile, consumer prices grew at the same pace as in May, when it touched a 15-month high. Chinese CPI rose 2.7% YoY in June, driven by a surge in food prices, especially in fruits and pork products.

A worrying sign, however, is the slowing down in factory activity in China – a leading manufacturing hub globally. Higher tariffs imposed by the US over the trade dispute as well as weaker domestic demand have suppressed new goods orders in June.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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