BEIJING (REUTERS) – Profits at China’s industrial companies grew at a a lot slower tempo in November, the statistics bureau stated on Monday (Dec 27), pressured by tumbling costs of some uncooked supplies, a faltering property market and weaker shopper demand.
Profits rose 9 per cent 12 months onyear in November to 805.96 billion yuan (S$171.7 billion), properly off the 24.6 per cent acquire reported in October.
For the January-November interval, industrial companies’ income rose 38.0 per cent year-on-year to 7.98 trillion yuan, slower than the 42.2 per cent rise within the first 10 months of 2021, the statistics bureau stated.
Zhu Hong, senior statistician at NBS, stated whereas state efforts to chill hovering wholesale costs in November took value pressures off downstream industries, the curbs meant the contribution from the mining and uncooked materials sectors to total revenue progress weakened.
“But companies still face great cost pressures, and the improvement in profits for downstream sector needs to be further consolidated,” Mr Zhu stated in an announcement accompanying the info launch.
China’s red-hot factory-gate inflation cooled barely in November, pushed by a authorities crackdown on runaway commodity costs and an easing energy crunch as Beijing scrambled to minimize the crippling financial results of surging prices.
The world’s second-largest economic system, which has misplaced steam after a stable restoration from the pandemic final 12 months, faces a number of challenges as a property downturn deepens, provide bottlenecks persist and strict Covid-19 curbs hit shopper spending.
The nation’s property misery has additionally damage the metal sector whereas manufacturing of cement, glass, and family home equipment stays susceptible to falling demand.
At a key agenda-setting assembly this month, China’s high leaders pledged to stabilise the economic system and preserve progress inside an inexpensive vary in 2022.
The People’s Bank of China (PBOC) this month minimize the amount of money that banks should maintain in reserve and lowered the one-year benchmark lending price to stimulate progress.
The industrial revenue information covers massive companies with annual income of over 20 million yuan from their most important operations.