(NBS) China’s industrial profits eased to a 10.1% annual growth to reach 680.2 billion yuan or $105 billion in August, down from 16.4% expansion in the year to July.
In the January to August period, industrial profits rose by 49.5%, compared to 57.3% January to July period.
The cooling profits of industrial firms reflected high commodity prices, fresh Covid-19 outbreaks, and an unfolding power crisis that threatened output and earnings.
Demand for construction goods and services was also weighed down by China’s crackdown on real estate speculations and fresh borrowings by developers.
Industrial firms saw an annual 8.4% uptick in liabilities at the end of August, a higher level compared to an 8.2% increase by the end of July.
Analysts expect industrial profits expansion to continue slowing down in the coming months due to persistent Covid-19 waves, slowing exports, and Beijing’s grip on the property sector.
The factory output rose at the slowest pace since July 2020. The profit has now increased at a slower pace for the sixth month.
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