China industrial profits decline in November as demand cools

[BEIJING] China’s industrial profits fell for a second month in November, adding to signs that weakening domestic demand and persistent deflation are weighing on corporate earnings.

Industrial profits dropped 13.1 per cent last month from a year earlier after a 5.5 per cent decline in October, according to data released by the National Bureau of Statistics on Saturday (Dec 27). Bloomberg Economics had forecast a slide of 15 per cent.

Profits in the first 11 months of the year rose 0.1 per cent, down from a 1.9 per cent increase recorded in the January-October period.  

The weak performance highlights the pressure on companies from soft domestic demand and worsening industrial deflation. More headwinds may lie ahead as investment continues to slump, consumption growth cools and trade tensions rise with other partners despite a tariff truce with the US. BLOOMBERG