China’s industrial firms see 15.5 per cent profit growth in November as economic recovery continues
- Companies’ profits rise to US$111.9 billion in seventh consecutive monthly gain, National Bureau of Statistics (NBS) says
- Rate of growth slows from 28.2 per cent in October due to higher base in 2019, NBS says
Profits in the month rose 15.5 per cent year on year to 729.3 billion yuan (US$111.9 billion), easing from October’s three-year high of 28.2 per cent, according to figures released on Sunday by the National Bureau of Statistics (NBS).
China’s industrial sector has rebounded well from the shock of the pandemic, with factories ramping up production to meet demand overseas. Factory-gate prices, a gauge for profitability, fell less than expected last month.
The slower growth in November was mainly due to a higher base a year earlier, said Zhu Hong, a statistician at the NBS.
“Profits at some traditional industries have showed improvement. With the approach of the heating season, demand for coal has risen and prices have increased, leading to an accelerated recovery in the coal sector,” he said in a statement.
Coal industry profits rose by 9.1 per cent in November, the first increase this year.
“Industrial profits are expected to maintain double-digit growth over the next few months, driven by low base effects, domestic economic recovery, improvements in overseas demand and the rebound in commodity prices benefiting the upstream sector,” Zhou Maohua, an analyst at China Everbright Bank, said.
Earnings at China’s state-owned industrial firms fell 4.9 per cent for January-November, narrowing from the 7.5 per cent decline in the first 10 months.
Private sector profits grew 1.8 per cent in the year through November, up from 1.1 per cent for the January-October period.
The industrial profit data covers large firms with annual revenue of more than 20 million yuan from their main operations.
