26 April 2017
China Sourcing Update: Price Index for US Imports from China (Mar 2017)
Price index for US imports from China rises slightly in March
Compiled by the US Department of Labor, the price index for US imports from China edged up to 100.2 in March from 100.0 (revised downward from the previously released figure of 100.1) in February (see exhibit 1).
In our view, the index readings in the last couple of months indicate the bottoming-out of prices of US imports from China after nearly five years of continuous fall. Possible reasons include a relatively stable exchange rate of the Chinese yuan against the US dollar, and a rise in ex-factory prices of Chinese products in Renminbi terms in recent months.
Looking ahead, as material costs have continued to climb, the ex-factory prices of Chinese products are expected to increase further in the near future. Therefore, we predict that the price index for US imports from China will continue to rise in the coming months.
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