Fall in China’s Industrial Profits Slowed in March 2020

With the gradual resumption of work in March 2020, China’s industrial profits reported a drop that was a bit less steep than previous. For the first three months of 2020, total profits (total revenues minus total costs) of industrial enterprises plunged by 36.7% y/y, compared to a 38.3% y/y drop both in February year-to-date.

The March figure, albeit better than the previous one, still suggests that COVID-19 severely impacted industrial enterprises’ profitability and that it will take more time for them to recover.

China’s industrial profits reported a drop that was a bit less steep than previous

The data published by China’s National Bureau of Statistics shows that manufacturing saw a marginal improvement, registering a 38.9% y/y decline of total profits, less steep than the plunge in February.

Essentially, an improvement is observed among 22 of the 30 sub-industries in manufacturing. Mining and utilities, on the other hand, witnessed their total profits plunged further, dropping by 27.5% y/y and 28.6% y/y, respectively.

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The deteriorations in mining and utilities are mainly driven by lower producer prices and sluggish demand of midstream and downstream industries, as the COVID-19 pandemic is spreading worldwide.

Detailed data and analysis on Covid-19 and its economic impact can be found in CEIC’s Coronavirus Data Monitor. Alternatively, sign in and access more on China’s Economy in the CEIC China Economy in a Snapshot - Q2 2020.