China’s Industrial Profits Fell 0.3% In June
Profits at major Chinese industrial firms dropped 0.3% Y-Y in June, down from a 0.6% growth posted in May, the National Bureau of Statistics (NBS) said Monday.
He Ping, an official with the Department of Industry at NBS, attributed the decline to the drop in price of industrial goods, rise in unit costs, and a large base of comparison last year.
Despite the decline, industrial companies have been profiting at a stable level with the total percentage decline slowing every month, he said, adding that the interest rate cuts have been very effective in helping the companies reduce financing costs and boost revenue.
Profits at industrial companies with annual revenues of more than CNY 20-M (US$3.27-M) totaled CNY 589-B in June, making total profits CNY 2.84-T in 1-H, down 0.7% Y-Y. The decline narrowed 0.1 percentage point from the rate seen in the January-May frame.
Of all the 41 categories, 30 sectors registered Y-Y growth while 11 industries such as mining and car manufacturing saw declines in profits.
In 1-H, the prime operating revenue of industrial firms gained CNY 51.8-T + 1.4%, while the actual cost rose 1.5% to CNY 44.6-T.
Have a terrific week.
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Paul Ebeling
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