Profits at China’s major industrial companies fell 1.1% year-on-year in the January-July period, official data showed.
In the first seven months of 2022, the combined profits of industrial companies with annual revenue of at least 20 million yuan ($2.92 million) reached 4.89 trillion yuan, according to the National Bureau of Statistics (ONE). ).
The drop in profits reversed the 1% rise recorded in the first half.
However, the combined revenue of these companies maintained a faster growth rate during the period, rising 8.8% year-on-year to 76.57 trillion yuan.
A total of 16 of the top 41 industries saw profits grow in the January-July period, with 14 posting an increase of more than 5%.
Zhu Hong, chief statistician at the NBS, highlighted the recovery in the equipment manufacturing industry and the rebound in industrial profits in the auto manufacturing sector. The resumption of supply chains and the implementation of pro-consumption policies, such as the reduction of the car purchase tax, benefited these sectors, Zhu added.
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In July, equipment manufacturing industry profits rose 6.8% year-on-year, up 2.7 percentage points from growth in June and a three-month rebound in a row.
The fall in profits reversed the 1% increase recorded in the first half
Auto manufacturing posted some of the fastest profit growth, rising sharply to 77.8% in July, up 30.1 percentage points from June.
More efforts are needed to consolidate the recovery, Zhu said, citing relatively higher costs for businesses, softening market demands for certain sectors, growing operating pressure and a more complex global outlook.
Article republished by the Chinese state media CGTN within the framework of an agreement between both parties to share content. Link to original article: https://news.cgtn.com/news/2022-08-27/China-s-industrial-profits-falls-1-1-in-first-7-months-1cPPYLtkw2Q/index.html
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