(Yicai Global) Jan. 11 -- China’s factory gate prices, a key indicator of corporate profitability, fell at the slowest pace in 10 months last month as industry recovers from the impact of the coronavirus pandemic.

The Producer Price Index fell 0.4 percent in December from a year earlier, according to data the National Bureau of Statistics released today. That was the slowest rate of decline since February 2020 and compared with an average 0.72 percent fall predicted by 21 chief economists canvassed by Yicai Global.

The rate of decline in the PPI has slowed from 3.7 percent in May, the steepest drop last year, as the manufacturing sector overcomes the impact of Covid-19. In November, the headline figure fell 1.5 percent. 

For the full year ended Dec. 31, the PPI was down 1.8 percent, close to the average 1.91 percent fall predicted by the 21 economists. They expect to see factory gate prices rebound this year to post an annual gain of 0.93 percent.

Editor: Emmi Laine