We take a break from the series on pitfalls to note an important economic indicator released today. China's producer price index was up 8.1% from April 2007. The link to the AP article on this is below.
http://ap.google.com/article/ALeqM5jrKONLCiG5D4aMKAE3CcIZv2rdrQD90I4H900
This is bad news for companies sourcing in China and the Chinese government. As the article notes, inflation can be a contributor to further unrest.
Steel was up 25% to 41%. Energy (coal) was up 20.9%. This is a tough time. Factories, service firms (like OPSA), and US companies sourcing in China that can hang tough in this environment will be stronger for the experience when things calm down.
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