China Apr industrial profits up 4% on year; reverses Mar fall

SINGAPORE (ICIS)–China’s industrial profits in April increased by 4.0% year on year, reversing the 3.5% contraction in March, official data showed on Monday.

For the first four months of the year, industrial profits in the world’s second-biggest economy grew by 4.3%, unchanged from January-March, according to China’s National Bureau of Statistics (NBS) said.

Manufacturing profit for the period rose by 8%, while utilities had a 36.9% increase in earnings, while mining registered 18.6% decrease on profits in the first four months.

Computer, communication, and other electronic devices’ manufacturing had the strongest profit growth of 75.8% in January to April 2024; while profits for non-ferrous metal smelting and welding and power/ heat production and supply increased by 56.6% and 44.1%, respectively.

Thirty-one out of the total 41 industries tracked by the NBS reported profit growth in January to April 2024. The share of industries that posted profit growth for the period increased to 75.6% from 68.3% in the first three months of the year.

NBS said that “the foundation for such recoveries still needs to be strengthened as domestic market still lacks effective demand and external environment remains gloomy.”

Thumbnail image: At Yantian port in Shenzhen City, Guangdong Province in south China, 16 May 2024. (Shutterstock)