China’s Industrial Profits Growth Rate hit 2-year high
The indicator grew at the fastest pace since mid-2018.
China’s industrial profits increased for a third consecutive month after a severe slump early this year due to the COVID-19 shock. The indicator grew at the fastest pace since mid-2018. The industrial firms saw their profits growing 19.6% y/y in July, compared to 11.5% y/y in June and 6% y/y in May.
According to China’s National Bureau of Statistics, in July, 32 of the 41 industrial sectors reported growth in profits, up from 26 sectors in June. The automobile and electronic devices sectors are the major drivers of the overall growth due to continued recovery in consumers’ confidence.
Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q3 2020 report.