Chinese firms' industrial profits shrink 5.5% in October, largest decline in 5 months
In January-October, industrial profits up 1.1%, slowing from first 9-month period due to slowing overall economic growth, trade tensions
ISTANBUL
The profits of the industrial companies in China plunged 5.5% year-on-year in October when the economy's overall growth pace stalled and trade tensions with the US resurfaced that month.
The monthly fall reversed the double-digit growth figures in August and September and was the largest monthly decline since June, according to data released by the National Bureau of Statistics on Thursday.
On the other hand, in the January-October period, the industrial profits grew 1.1% compared to the same period of the previous year, slowing from a 3.2% rise in the January-September period.
From January to October, the manufacturing and utilities sectors – which include suppliers of fuel, power, heat, and water – saw increases in earnings of 7.7% and 9.5%, respectively, while the mining industry witnessed a 27.8% decline in profits.
In the first 10 months of the year, automakers' profits increased by 4.4%, whereas in the first nine months, they had risen 3.4%,
In contrast to growth of 3.5% for industrial firms with foreign investment, including those with investment from Hong Kong, Macau, and Taiwan, and 1.9% for private corporations, profits at state-owned enterprises remained constant.
Trade tensions between China and the US had increased in October due to export limits, with US President Donald Trump threatening extra 100% tariffs on Chinese goods before the two economic superpowers reached an agreement in South Korea at the end of the month.
Meanwhile, with only 4.8% growth in the third quarter, the Chinese economy has slowed, and new data indicated that it may have lost even more impetus at the beginning of the fourth quarter.
For the fifth consecutive month, retail sales grew by 2.9% in October, which was the slowest growth in more than a year. For the first 10 months of the year, fixed-asset investment decreased by 1.7%, the lowest level since the pandemic in 2020.
Additionally, industrial output increased by 4.9%, which was less than anticipated.
At 5.1% in October, the urban unemployment rate continued to increase.
Anadolu Agency website contains only a portion of the news stories offered to subscribers in the AA News Broadcasting System (HAS), and in summarized form. Please contact us for subscription options.
