China Industrial Profits Back to Growth in July
China’s industrial profits gained 2.6% year-on-year to 512.67 billion yuan (US$72.28 billion) in July following a contraction of 3.1% in the previous month, data showed on Tuesday morning.
The statistics bureau said in a statement that the rise in industrial profits in July came mainly from petrochemical and auto sectors.
Infrastructure projects are also quoted to be a big supporter of the increase in industrial profits, in particular, the construction of railways pushed up profits in the mining and electrical products sectors.
However, the ongoing trade dispute between China and the US, paired with a gloomy global economic growth prospect, could weigh on the business outlook.
“The downward pressure on the economy is relatively high, the market demand is slowing down, the prices of industrial products are falling,” said Zhu Hong, senior statistician at the National Bureau of Statistics of China, in a statement.
“There will still likely be volatility and uncertainty in profits of industrial enterprises,” Zhu said.