Chinese industrial profits decline for fifth month

Chinese industrial companies’ profits fell for the fifth consecutive month in August, indicating that the economic downturn is set to continue, Bloomberg reported. Net profit dropped 6.2% this month compared to last year, a larger decline than the 3.1% average over the first eight months of the year, the National Bureau of Statistics said Thursday. The rate of decline has accelerated in recent months from a 5.4% drop in July and a 1.7% decline in June. Sales rose 10.2% in the first eight months of the year to US$9.1 trillion. The bureau’s figures are based on a survey of 41 industries. Figures indicate China is heading toward its weakest annual expansion in 22 years. The data follows the People’s Bank of China injection of record funds into the banking system this week, among other efforts to stimulate the economy.