China: Continued fall of PPI inflation signals weakening domestic demand - Nomura

Analysts at Nomura point out that China’s PPI inflation fell further to 3.3% y-o-y in October from 3.6% in September, consistent with market expectations (Nomura: 3.5%; Consensus: 3.3%).

Key Quotes

“The slowdown was again due to continued weakness in domestic demand and a high base last year (PPI inflation was 0.4% m-o-m compared to 0.7% m-o-m in October 2017).”

“PPI inflation in upstream sectors moderated broadly: in the raw material and processing sectors it fell to 6.7% y-o-y and 2.5%, respectively, from 7.3% y-o-y and 2.9% in September, while in the mining sector it edged up by a moderate 0.7 percentage points (pp) to 12.4% y-o-y.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.