CBX Retail Sourcing Report – Q1 2015
The big news continuing into 2015 is plummeting oil prices and their far reaching impact. A key driver of this trend is ongoing weakening in the Chinese manufacturing sector, highlighted by weak output preChinese New Year, traditionally a high point in Chinese productivity and a period which sets the stage for the rest of the year. Fluctuations in the currency markets and a strong U.S. dollar have also fed volatility in commodity markets since many commodities are bought and sold in USD. Another risk for 2015 is if China depreciates its currency, which will further impact commodity prices, since China consumes 40% of the world’s commodities. As such commodity prices will be a hot topic in 2015.