China’s industrial profits rebound sharply as economy stabilises
CHINESE industrial profits rose at the fastest pace in at least more than a year in August, a further sign the economy may be stabilising.
Industrial profits increased 17.2 per cent from a year earlier, reversing trend after declining in the past five months, according to data published by the National Bureau of Statistics on Wednesday. For the first eight months of 2023, profits fell 11.7 per cent from a year earlier.
The rise in profit suggests demand may be improving after the government ramped up measures in recent months to prop up the property market and spur consumer spending. Industrial production picked up in August, while producer price deflation eased, giving a boost to profits.
“With the steady rebound in industrial production and the improvement in the connection between production and sales, the income of industrial firms improved gradually,” the NBS said in a statement. The increase in August was the first monthly growth since the second half of last year, it said.
Manufacturers’ profits fell 13.7 per cent in first eight months of the year, 4.7 percentage points slower than in the January-July period, according to the NBS.
Economic growth is stabilising after a slowdown earlier in the year, although the ongoing slump in the housing market remains a major risk to the outlook.
Economists have downgraded their growth forecasts for China steadily during the year and expect 5 per cent expansion now. BLOOMBERG
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