Industrial Profits in Chinese Firms Grow at Fastest Pace in Almost Four Years
Industrial profits across China increased for the sixth straight month during October, reinforcing expectations that the manufacturing
Industrial profits across China increased for the sixth straight month during October, reinforcing expectations that the manufacturing sector in the country is on the rebound after containing the coronavirus pandemic. According to data released by the NBS, China’s industrial profits were up by 28.2% YoY in the month of October, following a 10.1% increase in the previous month.
October’s figures marked the fastest pace of growth seen on a monthly basis in nearly four years. The steep increase in industrial profits were driven by a growth in investment income and a low base in October 2019.
The industrial sector in the world’s second largest economy has posted a better than anticipated rebound since earlier this year when China was affected by the initial coronavirus outbreak as external demand remains strong despite the pandemic worldwide. According to Chinese Premier Li Keqiang, economic activity across the country could stabilize by 2021.
Between January and October this year, profits of industrial companies in China grew by 0.7% YoY, improving after having declined by 2.4% YoY between January and September 2020. Equipment manufacturing and electronic sectors saw the highest growth in profits while the auto manufacturing sector also saw its profits improve in October, supporting the surge.
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