China’ Industrial Enterprises’ Total Profits Plunge in the beginning of 2020
China’s industrial profits proved to be the next indicator revealing the devastating impact of Covid-19 on the industrial enterprises’ profitability. For the first two months of 2020, total profits (total revenues minus total costs) of industrial enterprises plunged by 38.3% y/y, the biggest drop since records began in 1999.
The data published by China’s National Bureau of Statistics shows that manufacturing was particularly hit, registering 42.7% y/y decrease. Mining and utilities, on the other hand, saw their total profits decline by 21.1% y/y and 23.2% y/y, respectively.
Total profits of foreign and private enterprises plummeted by 53.6% y/y and 36.6% y/y, respectively, registering their biggest drops ever. Total profits of state-owned enterprises declined by 32.9%, which was actually less than the record 59.2% y/y collapse in January 2009.
Detailed data and analysis on China’s Real Sector can be found in the CEIC China Economy in a Snapshot – Q1 2020.