An employee works at the factory of China State Shipbuilding Corporation (CSSC) (Tianjin) Shipbuilding Co., Ltd. in north China's Tianjin, June 21, 2023. (Xinhua/Zhao Zishuo)
BEIJING, July 10 (Xinhua) -- China's producer price index (PPI), which measures costs for goods at the factory gate, went down 5.4 percent year on year in June, the National Bureau of Statistics (NBS) said Monday.
The decrease expanded by 0.8 percentage points from that in May. On a monthly basis, the PPI edged down 0.8 percent, narrowing from the 0.9 percent drop a month earlier.
NBS statistician Dong Lijuan attributed the declines to falling prices in commodities, including oil and coal, and a high comparison base during the same period last year.
In June, 25 of all the 40 surveyed industrial sectors reported price declines, down from 26 in the previous month.
The PPI for industries related to oil and gas extraction, chemicals production, coal mining and washing registered wider declines ranging from 14.9 percent to 25.6 percent last month. The ferrous and non-ferrous metal industries saw their price levels down by 16 percent and 7.2 percent, respectively.
However, the price indexes were mildly higher for cultural products, plane manufacturing, electricity and heating, textile, and garment industries last month.
In the first half of the year as a whole, the average PPI dropped 3.1 percent from the same period in 2022.
Despite the falling PPI, there have been increasing signs of improving factory activities and strengthening economic momentum in China. The purchasing managers' index for the manufacturing sector, an advanced economic indicator released recently, ended a three-month decline to stand at 49 in June.
Analysts believe that China's overall economic recovery has seen stronger driving forces and a more solid foundation.
According to official data, the Chinese economy has shown a clear momentum of rebound and improvement with a 4.5-percent GDP growth in the first quarter. In the second quarter, the economy is expected to further pick up pace.
On Monday, the NBS also said that China's consumer price index came in flat in June compared with the same period last year, lower than the 0.2-percent increase in May. On a monthly basis, the prices were slightly down by 0.2 percent.
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