An analytical platform experts China Beige Book International called the main obstacle to the restoration and development of China’s economy. As reported by CNBC, weak consumption may become a serious problem.
General Director of the company Lyland Miller indicated that because of this, the enterprises would not be able to raise prices even if the production costs continue to grow. He believes that the trend will continue until the household expenditure occurs. “This is a pretty specific problem in China,” Miller concluded.
In addition, due to the jump in the prices of the raw materials, the price index of manufacturers (PPI) of China is an indicator of price changes for goods and services at the wholesale level – in May updated a record maximum for almost 13 years. The reason was the rise in prices for oil, metals and iron ore.