26 April 2018
China Sourcing Update: Price Index for US Imports from China (Mar 2018)
Price index for US imports from China
Price index for US imports from China rises in March
Compiled by the US Department of Labor, the price index for US imports from China edged up from 100.3 in February to 100.4 in March.
In our view, the increase in the price index in the last two months was mainly due to an appreciation of the Chinese yuan against the US dollar in the period. The daily fixing rate of the Chinese yuan against the US dollar strengthened by 0.7% during February to March, which more than offset the slight drop in ex-factory prices of Chinese products in Renminbi terms: China’s producer price index of industrial products (PPI), a major indicator of ex-factory prices of industrial products, edged down by 0.1% mom in February and by 0.2% mom in March.
Looking ahead, we expect that the price index for US imports from China will hover around the current level in the coming months, as the ex-factory prices of Chinese products are likely to stay relatively stable in the near future.
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