By Qiaoyi Li and Kevin Yao
BEIJING- China’s industrial profits plunged in September, recording the steepest monthly decline of the year, official data showed on Sunday, as policymakers ramp up stimulus to revitalize economic growth.
Profits in September fell 27.1 percent from a year earlier, following a 17.8 percent fall in August, while earnings slipped 3.5 percent in the first nine months versus a 0.5 percent rise in the January-August period, according to the National Bureau of Statistics (NBS).
The slump in industrial profits in September was due to factors such as insufficient demand and a sharper decline in producer prices, and a significantly higher base of comparison since August, NBS statistician Wei Ning said.
But recently unveiled policy measures will “foster a favorable environment for the production and operation of industrial enterprises, supporting the recovery and improvement of their profits”, Wei said in a statement.
China’s economy grew at the slowest pace since early 2023 in the third quarter, with the crisis-hit property sector showing few signs of steadying as Beijing races to revitalize growth.
Recent data also pointed to increased deflationary pressures, softer export growth and subdued loan demand, raising red flags over the economic recovery and strengthening the case for fiscal stimulus to galvanize growth.
Highlighting the business impact of price cuts and weak demand, profit at China’s auto industry tumbled 21.4 percent year-on-year to 30.5 billion yuan in August, data from the China Passenger Car Association showed.
The authorities have sharply ramped up policy stimulus, including interest rate cuts, since late September to ensure growth will reach Beijing target of around 5 percent this year. – Reuters
