China’s industrial profits grow anew

    1089

    SHANGHAI- Profits at China’s industrial firms grew for the fourth straight month in August, buoyed in part by a rebound in commodities prices and equipment manufacturing, the statistics bureau said.

    China’s recovery has been gaining momentum as pent-up demand, government stimulus and surprisingly resilient exports propel a rebound.

    Industrial firm profits grew 19.1 percent year-on-year in August to 612.81 billion yuan ($89.8 billion), the statistics bureau said.

    That compares with a 19.6 percent increase in July and is the fourth straight month of profit growth.

    However, industrial firms’ profits still face external pressures as rising tensions between Washington and Beijing cloud the global trade outlook.

    An employee working on a production line manufacturing steel structures at a factory in Huzhou, Zhejiang province, China. Profits of industrial firms in China still face external pressures as rising tensions between Washington and Beijing cloud the global trade outlook. (Reuters Photo)

    Raw material manufacturing profits increased by 32.5 percent in August, up from 14.7 percent in July, according to Zhu Hong, an official at the statistics bureau. This was driven in part by a rebound in the prices of international commodities such as crude oil and iron ore, he added.

    Meanwhile, profits of the general equipment manufacturing sector notched up 37 percent in August on-year, with electrical machinery up by 13.3 percent over the same period.

    Economic indicators in August, ranging from exports to producer prices and factory output, all pointed to a further pickup in the industrial sector.

    However, factory activity grew at a slower pace with smaller firms facing sluggish market demand and financial strains.

    The country has introduced a slew of measures to kick-start the economy, from tax and fee reductions to grace periods for the calling in of debt.