Industrial Profits Slump in July

Reuters: China July industrial profits slip 2.9 percent year on year
Profits earned by Chinese industrial companies declined 2.9 percent in July from a year ago, official data showed on Friday, underlining the weakness in the world's second-largest economy.

It was the second biggest drop in industrial profits since a total 4.2 percent decrease in January-February. Profits were down 1 percent in the first seven months of the year compared with the year-ago period.

National Bureau of Statistics official explanation: 国家统计局工业司何平博士解读1-7月份工业企业利润数据

1. Industrial production and sales growth slowed
2. Producer prices and raw materials prices fell 5.4% yoy in July; raw materials fell 6.1%.
3. Investment income fell from 110.4 billion yuan in June to 73.1 billion yuan in July (no mention of stock market...)

The positive spin:
Although the 7 month overall industrial profits fell to expand, but high-tech manufacturing and consumer goods manufacturing profits remained relatively rapid growth. 7 months, high-tech manufacturing profits rose 8.4% , consumer goods manufacturing industry increased by 7.5% . At the same time, interest rate cuts reduce costs, improve efficiency of the policy is to play a role, 7 months, corporate interest expense fell 3.1% , financial expenses decreased by 3% .

No comments:

Post a Comment