Profits for China’s industrial companies increased at a quicker pace through January and February of this year, despite it being a typically stunted production period due to the holiday season, reports Bloomberg. Industrial profits rose 5% year-on-year in the first two months, the National Bureau of Statistics said Sunday. That compares with a 4.2% increase in the single-month data for December.
The pickup is due to larger profits registered by energy and raw materials enterprises from higher commodities prices, according to a statement from NBS official Zhu Hong.
China’s manufacturers have been squeezed recently by elevated factory inflation, with surging global oil and gas prices due to the Russian invasion of Ukraine clouding the outlook. Tax reductions may provide some relief to those firms this year, but weak domestic spending and slowing global demand will likely curb output.
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