China’s factory prices recover on improving demand
January had seen China’s factory prices advance for the first time in 12 months. The year-on-year jump came to be the most rapid pace of expansion the country had seen since May 2019, indicating that the world’s second-largest economy is gaining momentum towards recovery.
The producer price index (PPI) recorded a 0.3% jump from a year earlier, the National Bureau of Statistics said. However, the figure placed a shade lower than the 0.4% jump expected by analysts in a Reuters survey. While it failed to surpass the expected mark, the index heavily reversed from its 0.4% record of decline in December.
China’s economy is predicted to expand 8.4% this year. This expectation came after it recorded a 2.3% growth in 2020, with the coronavirus crisis prompting the country to halt its economic activity for much of the March quarter last year.