China’s industrial firms’ profits increased in May, first time since coronavirus outbreak
- China’s industrial firms’ profits in May increased 6 per cent year on year after a four-month slump
- Further observation is needed to see if profit recovery could continue, according to the National Bureau of Statistics
Profits at China’s big industrial firms increased in May for the first time since the coronavirus outbreak as China’s economy shows signs of recovery.
Total profits in May reached 582.34 billion yuan (US$82 billion).
The NBS attributed the improvement in May to a significant drop in the purchase price of industrial products, as well as profit rebounds in several sectors, including petroleum processing, electric power, chemicals and steel.
“Although the profits of industrial firms in May have been positive with a growth for the first time since this year, the market demand under the influence of the pandemic is still weak, and it needs further observation to see if profit recovery could continue,” senior NBS statistician Zhu Hong said.
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Over the first five months of 2020, industrial firms saw profits fall by 19.3 per cent year on year, a slight improvement from the 27.4 per cent drop over the first four months, and the record 38.3 per cent year-on-year decline in the first two months of 2020.