Profits of industrial companies in China fell 15.5 percent in the first 7 months

The profits of industrial enterprises in China were reported to have decreased by 15.5 percent in January-July 2023 compared with the same period a year earlier.

According to data from the National Bureau of Statistics (UIB), the total profits of industrial enterprises with an annual turnover of more than 20 million yuan (2.74 million US dollars) amounted to 3.94 trillion yuan (540,000 million dollars) in the January-July period.

In said period, profitability decreased by 15.5 percent compared to the previous year. Profit increases were reported in 13 of 41 industries. The country’s industrial production rose 3.7 percent in July, below expectations.

Despite the low base created by the lockdown and quarantine measures implemented in cities that were home to key industries and lines of business, especially Shanghai, the country’s largest city, in the spring of last year, the drop in profitability this year gives negative signals about the post-epidemic recovery of industrial production.

The profits of industrial companies in China fell 4 percent in 2022 compared with the previous year. (AA)