logo
China's producer prices fall 3.6% in June, biggest drop in nearly two years as deflation deepens

China's producer prices fall 3.6% in June, biggest drop in nearly two years as deflation deepens

CNBC09-07-2025
China's producer prices plunged 3.6% in June from a year earlier, marking its largest decline in nearly two years, as a deepening price war rippled through the economy that's already grappling with weakening consumer demand.
The consumer price index edged 0.1% higher in June from a year ago, according to data from the National Bureau of Statistics Wednesday, showing early signs of recovery after four consecutive months of declines.
Economists had forecast a flat reading compared to the same period a year earlier, according to a Reuters poll.
The deflation in producer prices came worse than the expected 3.2% drop in a Reuters poll, marking the biggest fall since July 2023, according to LSEG data. The PPI has been mired in a multi-year deflationary streak since September 2022.
"Without a strong policy stimulus, it's hard to escape the ongoing deflationary spiral," said Larry Hu, chief China economist at Macquarie, adding that the momentum in China's exports in recent months has partly pared back Beijing's desire to stimulate consumption in any meaningful way.
"Policymakers will keep waiting until exports fall sharply," Hu added.
Last week, Chinese policymakers, in a top economic policy meeting chaired by President Xi Jinping, criticized the excessive price competition by Chinese companies to entice consumers, as the U.S. tariff onslaught has threatened the viability of selling to the world's largest consumer market.
Beijing pledged to tighten regulations on such aggressive price-cutting that has been unable to influence consumer behavior while biting into businesses' profitability.
"Businesses should be guided to improve product quality and support the orderly phasing out of outdated production capacity," a Chinese state-backed newspaper said, citing the meeting.
Profits at industrial firms plunged 9.1% in May from a year earlier, marking the steepest fall since October last year.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Building materials maker CRH to acquire Eco Material for $2.1 billion
Building materials maker CRH to acquire Eco Material for $2.1 billion

Yahoo

time8 minutes ago

  • Yahoo

Building materials maker CRH to acquire Eco Material for $2.1 billion

(Reuters) -Building materials maker CRH said on Tuesday it has agreed to acquire Eco Material Technologies, a supplier of supplementary cementitious materials, for $2.1 billion to expand its presence in North America. Dublin, Ireland-based CRH operates through two regional divisions Americas and International, of which the Americas business brings in 65% of revenues as per its latest annual filing, and includes the production of aggregates, cement, ready-mixed concrete and asphalt used in construction. As traditional cement production is responsible for around 8% of global CO2 emissions, the industry has been making the switch to low-carbon alternatives, through investments, joint ventures and mergers. With the takeover of the Utah-based near-zero carbon cement producer Eco Material, CRH also acquires its national network of fresh and harvested fly ash, pozzolans, synthetic gypsum and green cement operations. "This transaction secures the long-term supply of critical materials for future growth and puts CRH at the forefront of the transition to next generation cement and concrete," CRH chief executive Jim Mintern said. CRH, which has its presence across 28 countries, said it plans to fund the deal, expected to close in 2025, with cash on hand. The business will operate as Eco Material Technologies, a CRH Company. Sign in to access your portfolio

Candy giant Mars to invest $2 billion more in US manufacturing through 2026
Candy giant Mars to invest $2 billion more in US manufacturing through 2026

Yahoo

time8 minutes ago

  • Yahoo

Candy giant Mars to invest $2 billion more in US manufacturing through 2026

(Reuters) -Candy and snacks giant Mars on Tuesday announced plans to invest $2 billion more in its U.S. operations through next year to bolster the company's ongoing efforts to expand manufacturing in the country. The Twix and MilkyWay chocolate maker has already invested more than $6 billion in U.S. manufacturing in the last five years and the new funding will support a $240 million facility for Nature's Bakery in Salt Lake City, Utah. The new facility, opening on Wednesday, will create over 230 new jobs in the region and have the capacity to produce about one billion candy bars every year, Mars said. "The U.S. is our biggest and most important market, and a key engine of growth for the long term – not only through our legacy manufacturing footprint but also through the expansion of strategic acquisitions like Nature's Bakery, which is already scaling quickly," said Mars CFO Claus Aagaard. Many companies are doubling down on their U.S. production capabilities after the Trump administration imposed sweeping import tariffs aimed at narrowing the trade deficit and prompting multinational firms to bring manufacturing back to America. About 94% of Mars products sold in the U.S. are produced locally. The company announced a $36 billion deal to buy Pringles maker Kellanova in August, and has received approval from U.S. antitrust regulators while EU counterparts opened a full-scale investigation last month.

PagerDuty (PD) Climbs 7% on Analyst Upgrade, Sale Reports
PagerDuty (PD) Climbs 7% on Analyst Upgrade, Sale Reports

Yahoo

time8 minutes ago

  • Yahoo

PagerDuty (PD) Climbs 7% on Analyst Upgrade, Sale Reports

We recently published . PagerDuty, Inc. (NYSE:PD) is one of the best-performing stocks on Monday. PagerDuty rallied for a second day on Monday, adding 7.06 percent to close at $16.83 apiece as investors took heart from an analyst upgrade and news that it was exploring a sale. In its market note, investment firm TD Cowen raised its price target and recommendation for PagerDuty, Inc. (NYSE:PD) to $22 from $17 and to 'buy' from 'hold' previously. This followed a report by Reuters on Friday, quoting sources privy to the matter, that PagerDuty, Inc. (NYSE:PD) was exploring a potential sale after receiving interest from buyers. Reuters said PagerDuty, Inc. (NYSE:PD) is currently working with Qatalyst Partners to facilitate the potential acquisition, and that investment bankers are now soliciting further buyer interest. Copyright: stokkete / 123RF Stock Photo According to TD Cowen, Qatalyst Partners has a strong track record of facilitating software mergers and acquisitions, adding that many of its facilitated transactions resulted in sales over the years. PagerDuty, Inc. (NYSE:PD) is a California-based software maker that helps businesses monitor their IT systems and respond to cyber incidents and outages. While we acknowledge the potential of PD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Sign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store