China industrial production has declined sharply
China industrial production has declined sharply
2022.11.27 11:27
China industrial production has declined sharply
Budrigannews.com – Due to Covid restrictions and falling factory-gate prices, industrial firms in China’s first ten months of the year saw continued declines in profits.
According to data provided by the National Bureau of Statistics on Sunday, industrial profits decreased by 3.0% from January to October compared to the same time last year.That was in contrast to a decline of 2.3% over the initial nine months.
An interpretation statement that was provided with the data stated, “The structure is generally improving while the profit is falling.”The risks of a global recession as well as the outbreaks of Covid in China may exert additional pressure on the recovery of industrial profits.
As outbreaks began to spread throughout regions, including Guangdong province, a manufacturing hub, in October, restrictions on covid were tightened, reducing consumer and business activity. Exports contracted unexpectedly last month as a result of a slowdown in global demand.
As deflation strikes, businesses struggle to raise prices, reducing profit margins.In October, producer prices fell for the first time in nearly two years, largely as a result of falling commodity prices worldwide and weakening domestic demand as Covid restrictions spread.
In a statement sent via Wechat on Sunday, Bruce Pang, chief economist and head of research for Greater China at Jones Lang LaSalle, stated that industrial companies’ destocking has slowed, which may be related to industrial supply-chain stability.
Pang stated that at the end of October, product turnover days and the average payback period for accounts receivable were 18.2 days and 54.6 days, respectively, an increase of 0.2 days and 0.6 days from the end of September.
A record-breaking increase in cases last week has prompted major cities like Beijing and Guangzhou to tighten mobility restrictions, despite the fact that authorities have implemented a number of measures to make Covid controls more targeted and less detrimental to the economy.
Some economists have lowered their growth projections due to the possibility of a slow and difficult reopening.
