According to data released by the National Bureau of Statistics {NBS}, China’s industrial profits grew by 2.6% in July to touch 512.7 billion yuan. Despite the trade war pressures on the Chinese manufacturing sector, profits managed a significant upswing after the 3.1% decline seen during June.

Profits rose higher in July buoyed by higher spending on public works and better margins in petrochemicals and auto industries. Despite the positive figures, economists remain cautious about Chinese economy as business conditions worsen over escalating trade tensions.

Total industrial profits earned this year till July touched 3.50 trillion yuan, 1.7% lower than the corresponding period in 2018. Meanwhile, state-owned industrial firms in China have experienced an 8.1% decline in profits during January-July 2019. Industrial profits in China have been experiencing a downfall since H2 2018 after the US started the trade war.