Beijing: Profit of Chinese industrial firms grew at a very slow pace in November bureau of statistics said on Monday, under pressure from falling prices of some raw materials, a slump in the property market and weak consumer demand.
Profit in November rose 9.0% to 805.96 billion yuan ($126.54 billion), significantly higher than the 24.6% gain reported in October.
For the January-November period, industrial firms’ profits rose 38.0% year-on-year to 7.98 trillion yuan, slowing from 42.2% growth in the first 10 months of 2021, the Bureau of Statistics said.
NBS senior statistician Zhu Hong said the state’s efforts to calm wholesale price hikes in November eased cost pressures on downstream industries, but the restrictions meant that contributions from the mining and raw materials sectors to overall profit growth were weak. done.
“But companies still face significant cost pressures, and downstream sector profitability improvements need to be further consolidated,” Zhu said in a statement accompanying the data release.
China’s red-hot factory-gate inflation cooled slightly in November, driven by a government crackdown on runaway commodity prices and an easy power crunch as Beijing scrambles to cushion the dire economic effects of rising costs .
The world’s second-largest economy, which lost steam last year after a solid recovery from the pandemic, faces several challenges as the asset slump deepens, supply constraints persist and tighten COVID-19 The restrictions hit consumer spending.
The country’s wealth crisis has also hurt the steel sector, while production of cement, glass and home appliances has been hit by falling demand.
In a major agenda-setting meeting this month, China’s top leaders pledged to stabilize the economy and keep growth within reasonable limits in 2022.
The People’s Bank of China (PBOC) this month cut the amount of cash that banks must hold in reserve and lowered the one-year benchmark lending rate to stimulate growth.
Industrial profit data covers large firms with annual revenues of more than 20 million yuan from their core operations.
Profit in November rose 9.0% to 805.96 billion yuan ($126.54 billion), significantly higher than the 24.6% gain reported in October.
For the January-November period, industrial firms’ profits rose 38.0% year-on-year to 7.98 trillion yuan, slowing from 42.2% growth in the first 10 months of 2021, the Bureau of Statistics said.
NBS senior statistician Zhu Hong said the state’s efforts to calm wholesale price hikes in November eased cost pressures on downstream industries, but the restrictions meant that contributions from the mining and raw materials sectors to overall profit growth were weak. done.
“But companies still face significant cost pressures, and downstream sector profitability improvements need to be further consolidated,” Zhu said in a statement accompanying the data release.
China’s red-hot factory-gate inflation cooled slightly in November, driven by a government crackdown on runaway commodity prices and an easy power crunch as Beijing scrambles to cushion the dire economic effects of rising costs .
The world’s second-largest economy, which lost steam last year after a solid recovery from the pandemic, faces several challenges as the asset slump deepens, supply constraints persist and tighten COVID-19 The restrictions hit consumer spending.
The country’s wealth crisis has also hurt the steel sector, while production of cement, glass and home appliances has been hit by falling demand.
In a major agenda-setting meeting this month, China’s top leaders pledged to stabilize the economy and keep growth within reasonable limits in 2022.
The People’s Bank of China (PBOC) this month cut the amount of cash that banks must hold in reserve and lowered the one-year benchmark lending rate to stimulate growth.
Industrial profit data covers large firms with annual revenues of more than 20 million yuan from their core operations.
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