China’s economic growth has further slowed down in February, according to just released official data. Rising uncertainties over trade negotiations with the United States have depressed anticipations whereas official policy aimed at revamping business activities has not been effectively felt. Textile production prices have increased at a lower pace, as a result.
China’s economy is further slowing down, according to official data which have just been released this week.
Industrial production has experienced its lowest growth on record in the first two months of the year.
Factory output has risen 5.3% from a year earlier which could look very strong for a developed country but is very weak result for China.
Earlier this month, the official PMI (Purchasing Manager Index) has further fallen with only 49.2% of respondents expressing optimism whereas a majority was therefore pessimistic about business prospects.
The international data supplier IHS Markit has found that optimism has gained ground but uncertainties continue depressing anticipations, especially extensive trade negotiations with the United States.
Other factors are worrying purchasing managers, including stricter environmental rules and a rise in production costs.
On the other hand, the Chinese government has begun reacting through monetary easing and a jump in public investment with positive effects not yet clearly felt, nevertheless.
As a result of these poor prospects, production prices are no more rising at factory gates overall.
Textile prices have increased at a lower pace in February, rising 1.4% from a year earlier, from 1.7% in December and 1.6% in January.
Clothing production prices have continued rising 1.6% with higher labor costs limiting room for lower inflation.
Although consumer prices have only gained 1.5% overall in February, clothing prices have rebounded 2.2% at retail.
Source: Emergingtextiles
