China's producer price index fell 0.7% MoM in July, a 0.4 percentage-point
larger decline than June, NBS urban statistics chief Dong Lijuan said.
Input-driven falls were the main drag: oil extraction -11.8%, refined petroleum
products manufacturing -8.4%, organic chemical raw materials manufacturing
-4.2%; non-ferrous ore mining -2.1% and non-ferrous metal smelting & rolling
-1.7%; those five sectors reduced MoM PPI by about 0.65ppt. Seasonal/weather
effects also weighed: construction slowdowns cut prices in ferrous metal
smelting & rolling (-0.8%) and non-metallic mineral products (-0.5%); higher
hydropower and wind output pushed hydropower -10.3% and wind power -3.9%; those
four sectors lowered MoM PPI by roughly 0.11ppt. Offsetting price gains were
seen in new-economy and quality-consumption sectors: smart UAV manufacturing
+2.5%, new carbon materials +0.4%, shipbuilding & related equipment
manufacturing +0.3%; smart home devices +3.4% and skincare cosmetics
manufacturing +0.7%.
