Economic Indicators

Chinese industrial profits sink in sluggish start to the year

2023.03.26 23:34


© Reuters.

By Ambar Warrick

Investing.com–Chinese industrial profits fell sharply in the first two months of 2023, data showed on Monday, as a recovery in manufacturing activity was largely offset by softening demand in the face of slowing global growth and lingering aftereffects of the COVID pandemic.

dropped 22.9% in the year to February, data from the National Bureau of Statistics (NBS) showed. This compared with a 4% drop in industrial profits through 2022.

While manufacturing output rebounded with the lifting of anti-COVID measures earlier this year, demand did not see a corresponding recovery. This largely impacted the margins of local manufacturers. particularly revenue growth.

This was also indicated in weak , which unexpectedly shrank further in February.

The Chinese economy saw a somewhat mixed recovery this year with the lifting of COVID restrictions. While local business activity roared back, demand still remained weak, with Chinese imports and inflation trending well below expectations.

Worsening economic conditions across the globe also hampered overseas demand for Chinese exports, which in turn weighed on industrial profits.

The Chinese economy also faces some headwinds from slow local spending and a weak real estate sector, with some facets of the economy still struggling even after the lifting of anti-COVID measures.

Still, the Chinese government is banking on a pickup in local consumption and infrastructure spending to drive an economic recovery this year. While the government forecast GDP growth of 5% in 2023, research analysts are more bullish on a Chinese recovery.

Goldman Sachs (NYSE:) expects the Chinese economy to grow 6% this year.

Monday’s data marks the first reading on industrial profits from China this year, as the government usually clubs January and February to smooth over disruptions from the Lunar New Year holiday.

The country had stopped releasing monthly readings on industrial profits in mid-2022.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 92,800.86 1.62%
ethereum
Ethereum (ETH) $ 3,358.77 2.00%
tether
Tether (USDT) $ 0.999626 0.05%
solana
Solana (SOL) $ 232.80 1.70%
bnb
BNB (BNB) $ 615.73 3.95%
xrp
XRP (XRP) $ 1.37 4.76%
dogecoin
Dogecoin (DOGE) $ 0.388281 3.62%
usd-coin
USDC (USDC) $ 1.00 0.05%
cardano
Cardano (ADA) $ 0.944942 2.48%
staked-ether
Lido Staked Ether (STETH) $ 3,359.45 1.89%
avalanche-2
Avalanche (AVAX) $ 42.72 2.41%
tron
TRON (TRX) $ 0.196049 0.95%
the-open-network
Toncoin (TON) $ 6.21 0.34%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 2.07%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,971.96 2.51%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 92,687.83 1.60%
stellar
Stellar (XLM) $ 0.426805 15.15%
polkadot
Polkadot (DOT) $ 8.08 2.19%
chainlink
Chainlink (LINK) $ 17.35 0.93%
weth
WETH (WETH) $ 3,356.91 1.99%
bitcoin-cash
Bitcoin Cash (BCH) $ 493.73 0.93%
sui
Sui (SUI) $ 3.34 4.19%
near
NEAR Protocol (NEAR) $ 6.60 1.79%
pepe
Pepe (PEPE) $ 0.000018 5.02%
leo-token
LEO Token (LEO) $ 8.01 0.85%
litecoin
Litecoin (LTC) $ 92.83 1.16%
uniswap
Uniswap (UNI) $ 11.25 1.05%
aptos
Aptos (APT) $ 11.91 0.45%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,534.44 2.09%
internet-computer
Internet Computer (ICP) $ 11.06 4.92%
hedera-hashgraph
Hedera (HBAR) $ 0.13512 1.75%
usds
USDS (USDS) $ 0.999522 0.02%
crypto-com-chain
Cronos (CRO) $ 0.17105 3.26%
ethereum-classic
Ethereum Classic (ETC) $ 28.49 4.27%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.52442 4.57%
bittensor
Bittensor (TAO) $ 554.91 1.91%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.08%
render-token
Render (RENDER) $ 7.46 1.98%
kaspa
Kaspa (KAS) $ 0.148719 1.37%
arbitrum
Arbitrum (ARB) $ 0.880442 1.62%
celestia
Celestia (TIA) $ 8.33 11.14%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.38 4.58%
whitebit
WhiteBIT Coin (WBT) $ 23.59 1.46%
dai
Dai (DAI) $ 0.999651 0.00%
vechain
VeChain (VET) $ 0.040609 0.11%
filecoin
Filecoin (FIL) $ 5.37 2.95%
mantra-dao
MANTRA (OM) $ 3.58 0.53%
bonk
Bonk (BONK) $ 0.000042 3.69%
blockstack
Stacks (STX) $ 2.10 2.57%
okb
OKB (OKB) $ 52.54 3.29%