BEIJING – China's industrial profits fell in September, extending their sharpest drop in a year, official data said on Sunday, as policymakers stepped up efforts to revive economic growth.
Profits fell 27.1% in September from a year earlier, following a 17.8% fall in August, while earnings fell 3.5% in the first nine months compared to a 0.5% rise in the January-August period, according to the National Bureau of Statistics (NBS ). ).
China's economy grew at its slowest pace since early 2023 in the third quarter, with the crisis-hit construction sector showing few signs of stabilization as Beijing races to revive growth.
The latest data also pointed to increasing inflationary pressure, soft export growth and low demand for loans, raising red flags for economic recovery and strengthening the case for fiscal stimulus.
Highlighting the business impact of price cuts and weak demand, profits in China's auto industry fell 21.4% year-on-year to 30.5 billion yuan in August, data from the China Passenger Car Association showed.
China's finance minister has vowed to revive the faltering economy, without providing a pocket dollar, following the central bank's announcement late last month of the most aggressive monetary stimulus measures since the pandemic began.
State-owned firms recorded a 6.5% drop in profits in January-September, foreign firms saw wages rise 1.5%, while private companies fell 0.6%, according to NBS data.
The industry profit numbers cover firms with an annual revenue of at least 20 million yuan ($2.8 million) from their core activities.
($1 = 7.0746 a lot)
