China producer prices shrink most in 3 years in August

Credit: REUTERS/JASON LEE

China's factory gate prices contracted for the second month in August and at a sharper rate, reinforcing the urgency for Beijing to step up stimulus as a deepening trade war with the United States heaps pressure on its manufacturing sector and the broader economy.

BEIJING, Sept 10 (Reuters) - China's factory gate prices contracted for the second month in August and at a sharper rate, reinforcing the urgency for Beijing to step up stimulus as a deepening trade war with the United States heaps pressure on its manufacturing sector and the broader economy.

The producer price index (PPI), a key barometer of corporate profitability, dropped 0.8% from year earlier in August, National Bureau of Statistics (NBS) said.

It was the worst year-on-year contraction since August 2016, when it fell 0.8%.

Analysts polled by Reuters had expected factory gate inflation to have shrunk 0.9% year-on-year last month, following a 0.3% decline in July.

The consumer price index (CPI) rose 2.8% in August on-year, unchanged from July. That compared with a 2.6% increase predicted by analysts.

(Reporting by Beijing Monitoring Desk; Editing by Kim Coghill)

((hongkong.newsroom@thomsonreuters.com; (8610)6627-1277; Reuters Messaging: roxanne.liu@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More