Data released by the National Bureau of Statistics (NBS) showed that China's industrial profits fell by 10% per annum in September, slowing compared to September (-27.1%), when the steepest monthly decline of the year was recorded. Cumulatively, profits fell 4.3% from January to October after a 3.5% decline in the first 9 months of 2024. Economists had expected a 3.6% drop. In general, businesses are struggling to maintain profitability in the face of years of crisis in the real estate market, persistent unemployment and income pressures, as well as growing trade tensions. Separate economic indicators earlier this month pointed to broadly soft demand, despite numerous stimulus measures from the Chinese government, which, however, did not meet expectations.
NBS also stated that profits shrink for non-metallic minerals (-49.6%), coal mining (-23.7%), chemicals (-7.7%), special equipment (-5.2%), electrical machinery (-5.1%), cars (-3.2%), and oil and natural gas (-1.8%). But profits rose for non-ferrous metal smelting (40.0%), heat production (13.8%), textile (5.3%), computer, communications (8.4%), and agriculture, food (2.8%).
State-owned companies reported an 8.2% decline in profits from January to October, while foreign firms saw a modest 0.9% increase. Private sector profits dipped by 1.3%.