China’s industrial profits extended this year’s double-digit pace of declines into a sixth month as waning demand took a toll on companies’ profit margins, bolstering the case for more supportive policy to help the economy, reports Reuters.
The year-to-date 16.8% fall followed an 18.8% profit decline in January-May, and reinforced a frail economic recovery that brought weaker-than-expected 6.3% growth in the second quarter.
In June alone, industrial earnings shrank by 8.3% from a year earlier, according to data from the National Bureau of Statistics (NBS) on Thursday. Profits were down 12.6% in May.
Industrial profits “have narrowed their year-to-date declines month by month,” NBS statistician Sun Xiao said in an accompanying statement, adding efforts will focus on the central government’s directives to “implement macro policies in a scientific and precise manner” to expand demand.