China industrial profits slide as zero-Covid, costs weigh on demand
- Combined profit of Chinese industrial firms with annual revenue above 20 million yuan (US$2.9 million) fell 1.1 per cent year on year in January to July
- Profits at lowest monthly figure in two years, representing an almost 25 per cent slide from June, Post’s calculation based on official data shows
China’s industrial profits trended lower last month amid weak domestic demand and persistent high costs, in the latest proof of continued economic headwinds and a reminder on the need for stronger policy support.
Although the supply side was relatively less impacted by China’s zero-Covid policy, which has affected demand and dampened economic outlooks, analysts warned of further problems.
The combined profit of Chinese industrial firms with annual revenue of above 20 million yuan (US$2.9 million) fell 1.1 per cent year on year to 4.9 trillion yuan (US$712 billion) in the first seven months of 2022, the National Bureau of Statistics said on Saturday.
China faces high cost levels, insufficient market demand for some industries and rising operating pressure
Profits in July totalled 622.7 billion yuan (US$90.5 billion), according to the Post’s calculation based on government data.