China's factory gate prices are falling less, rising more

China's factory prices fell 0.9% in February, a smaller drop than last month. Prices are now rising month-over-month by 0.4%, the same pace as January. This means factories are selling goods for slightly more money each month, and the year-over-year decline is shrinking.

This data shows a potential shift in China's industrial economy. For months, factory prices have been falling year-over-year, indicating weak demand or oversupply. The narrowing decline suggests this trend might be reversing. Specifically, prices for non-ferrous metals and electrical wire are up sharply year-over-year, while fuel and energy prices are down significantly. This points to specific sectors driving the change, possibly reflecting global commodity markets or domestic industrial policy.