China industrial profits post steepest drop in 14 months
Dec. 27 (Asia Today) — China’s industrial profits in November posted their sharpest year-on-year decline in 14 months amid weak domestic demand and deflation concerns, according to data released Friday.
Reuters and other outlets reported that China’s National Bureau of Statistics said industrial profits in November fell 13.1% from a year earlier. The decline followed an October drop of 5.5%, marking the second consecutive monthly fall and the weakest reading since September last year, when profits fell 27.1%.
Cumulative industrial profits for January through November rose 0.1% from a year earlier, slowing from 1.9% growth in the January-October period, the bureau said.
By sector, mining profits fell 27.2% in the January-November period, while profits rose in manufacturing (+5.0%) and utilities such as electricity and water (+8.4%).
Coal mining and ore processing profits fell 47.3% over the first 11 months of the year, the data showed. Profits rose in computer, communications and other electronic equipment manufacturing (+15.0%) and automobile manufacturing (+7.5%).
Reuters said industrial profits remain sluggish despite strong exports, reflecting weak domestic demand and fueling calls for additional stimulus measures.
The report said Beijing has not announced new stimulus as the government’s “around 5%” growth target for this year is seen as within reach, though expectations for further support persist as authorities have repeatedly pledged to boost domestic demand and promote employment next year.
China’s industrial profits are calculated based on enterprises with annual main business revenue exceeding 20 million yuan, about 4.1 billion won ($3.1 million).
— Reported by Asia Today; translated by UPI
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