China’s Oct industrial profits extend decline on weak demand
2024.11.26 21:43
BEIJING (Reuters) – China’s industrial profits fell again in October but less sharply than in September, official data showed on Wednesday, as demand remained soft in the crisis-hit $19 trillion economy.
Businesses are struggling to stay profitable in the face of a years-long property crisis, sustained unemployment and income pressures, and rising trade tensions. Policymakers have so far not been able to quickly reflate the economy.
Profits in October fell 10% from a year earlier, following a 27.1% slump in September, while earnings slid 4.3% in the first 10 months versus a 3.5% decline in January-September, National Bureau of Statistics (NBS) data showed.
Separate economic indicators earlier this month pointed to broadly soft demand, with consumer prices at their weakest in four months while industrial output continued to trend downward and new home prices fell at their fastest pace in nine years.
Excluding financial sector firms, companies listed on the Shanghai and Shenzhen bourses reported operating income down 1.6% over the third quarter from a year earlier, while their profits were down 7%, state media reported.
China’s $1.4 trillion local debt package unveiled earlier in November fell short of expectations for strong stimulus to boost consumption, meaning investors are still waiting for a more direct fiscal bazooka.
State-owned firms saw profits decline 8.2% in the first 10 months, foreign firms posted a 0.9% rise and private-sector companies netted a 1.3% fall, according to a breakdown of the NBS data.
Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.8 million) from their main operations.
($1 = 7.2442 )
