China's factory prices surge 7.8% on strong manufacturing activity

Beijing

CHINA'S prices at factory gates in February continued to rebound, growing at their fastest pace in nearly nine years due to a pickup of manufacturing activity.

After falling for more than four consecutive years, factory prices have been in positive territory since last September, growing 7.8 per cent last month on the back of strong commodity prices and robust manufacturing activity.

Increase in oil and natural gas exploitation, coal mining, as well as metal smelting contributed to the expansion of the producer price index (PPI). Prices of raw materials increased 15.5…