China industrial profits grow at faster pace of 11.5% in June

SINGAPORE (ICIS)–China’s industrial profits reached yuan (CNY) 666.6bn ($95bn) in June, up by 11.5% year on year, faster than the 6.0% growth recorded in May, official data showed on Monday.

The data indicates that recovery in the world’s second-biggest economy is gaining momentum.

Factories’ production activities and sales both accelerated in June, leading to higher revenue and profits, according to the National Bureau of Statistics (NBS).

Narrow declines in prices of industrial products and lower costs also helped in June.

Some key industries, including steel, oil and gas exploration, oil processing and non-ferrous metals saw sharp improvement in profits in June, thanks to demand recovery, eased cost pressure and the government’s stimulus measures.

For the first half of 2020, industrial profits were down by an average of 12.8% year on year.

($1 = CNY7.0)

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