China Jan-Oct industrial profits fall 7.8% year on year

SINGAPORE (ICIS)–China’s industrial profits in the first 10 months declined at a slower pace of 7.8% year on year, with growths posted in the three consecutive months to October, official data showed on Monday.

In the first nine months to September, industrial profits registered a 9% year-on-year contraction, according to data from China’s National Bureau of Statistics (NBS).

For the month of October, industrial profits were up 2.7% year on year, rising for the third straight month, according to the data.

In January-October 2023, profits from manufacturing declined by 8.5%, while those from mining fell by 19.7%, easing from the nine-month contractions of 10.1% and 19.9%, respectively.

For utilities, the 10-month industrial profit grew 40%, better than the 38.9% increase recorded in the nine-months-to-September period.

The top three sectors with biggest profit gains in the first 10 months are electricity and heat production/supply (50.1%), ferrous metal smelting & processing (37%), and electric machinery and equipment manufacturing (20.8%).

China, which is the world’s second-biggest economy, has been slowing down for most of 2023 amid weakening external demand and slumping property sector.

Thumbnail image: At the Qianwan container terminal of Qingdao port in Shandong Province, China, 20 November 2023. (Source: Costfoto/NurPhoto/Shutterstock)