China’s industrial profits rose 21.1% in May, compared to the same period last year, according to data from the National Bureau of Statistics. This growth was driven by factory output and exports, which have helped to counter soft domestic demand.
Economic Growth Remains Fragile
The country’s economic growth remains fragile, hindered by a prolonged property downturn and deep structural imbalances. Despite this, profits at industrial firms in May increased, with manufacturers of computers, communication, and electronic equipment seeing a significant surge of 103.9% in January-May.
However, profits of automakers dropped 19.8% despite robust exports. Analysts expect policymakers to step up targeted support to stabilize corporate profitability, particularly as consolidation accelerates in sectors grappling with overcapacity and cut-throat competition.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
