Profits for China’s industrial companies fell 0.6% last month from the previous year, the first such decline in two years, Bloomberg reported. The decrease is a sharp contrast from July’s 13.5% growth, and highlights another sign of stress in the industrial sector after output growth slowed to a five-year low. A statement from the National Buerau of Statistics cited weak demand, falling factory prices, and the slowdown in industrial production as the main causes of the decline. Additionally, steel prices have fallen 27% this year amid industry overcapacity and slowing demand from home builders.
Categories