China’s Industrial Profit Growth Slows in First Eight Months
Zhu Yanran
DATE:  Sep 27 2024
/ SOURCE:  Yicai
China’s Industrial Profit Growth Slows in First Eight Months China’s Industrial Profit Growth Slows in First Eight Months

(Yicai) Sept. 27 -- Profit growth at China’s industrial firms braked in the January to August period, following a 17.8 percent year-on-year plunge last month, according to official data.

Profits at industrial enterprises rose 0.5 percent to CNY4.65 trillion (USD663.5 billion) in the eight months ended Aug. 31 from a year ago, versus 3.6 percent growth in the first seven months, figures released by the National Bureau of Statistics showed today.

The slowdown was mainly due to insufficient demand, extreme weather, and last year’s high base, said NBS statistician Yu Weining.

China’s government this week rolled out the biggest package of economic stimulus measures since the pandemic, including cutting the amount of cash banks must hold in reserve and lowering a key policy rate, after the earlier release of other disappointing key data for August.

Of the 41 major industrial sectors, 29 notched up year-on-year profit growth, accounting for nearly 71 percent of the total, according to the NBS data. Profits at businesses in these sectors climbed 2.4 percent, while those in high-tech manufacturing, consumer goods, and equipment surged 10.9 percent, 8.4 percent, and 3.2 percent, respectively.

High growth all last year suggests that this half’s industrial profits will come under pressure from 2023’s high base, Wu Chaoming, deputy director of the Chasing International Economic Institute, told Yicai. But the decline in the producer price index will likely continue to narrow, easing the drag on profits, Wu added.

Editor: Futura Costaglione

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