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China’s Industrial Profits Rise at Fastest Pace Since June 2018

Chinese industrial companies reported an increase in profits for the third consecutive month during July, as the manufacturing sector recovers from the slump after the coronavirus pandemic. Industrial profits in China rose 19.6% YoY to $85.58 billion in July, growing at the fastest rate seen since June 2018, after rising by 11.5% in the previous month.

China has been forging ahead towards economic recovery after bringing the coronavirus pandemic under control even as it rages on across most other parts of the world. Pent-up domestic demand, stimulus support from the government and strong exports have helped drive industrial profits higher over the past few months.

Between January and July, industrial companies’ profits declined by 8.1% YoY, better than the 12.8% decline seen this year until June. The rise in industrial profits during July was driven by profits rising in automobiles and electronics firms.

However, the manufacturing sector faces possible strain due to a tense relationship between the US and China. Even though both countries have recently reaffirmed their commitment towards honoring the phase one trade deal, tensions are rising over China’s position in the South China Sea.

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Arslan Butt
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Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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