Profits at China’s industrial firms contracted further in the January-November period as strict COVID 19-related curbs disrupted factory activity and supply chains, but analysts foresaw brighter long-term economic prospects after a U-turn in COVID policy, reports Reuters.
Industrial profits fell 3.6% in January-November from a year earlier to RMB 7.7 trillion ($1.11 trillion), according to data released by the National Bureau of Statistics (NBS) on Tuesday. That compares with a 3.0% drop for January-October. No standalone data was released for November.
Zhu Hong, a senior NBS statistician, highlighted a rebound in COVID outbreaks and lacklustre demand in November that curbed industrial production and placed increasing pressure on Chinese businesses, according to a statement from the bureau.