(Bloomberg) — Chinese industrial profits surged after months of declines, signaling that national campaigns to tackle overcapacity and excessive competition are bearing fruit.<\/p>\n
Industrial profits in August climbed 20.4% from a year earlier, the first increase in four months, according to data released Saturday by the National Bureau of Statistics. For the first eight months of the year, they climbed 0.9%, beating a Bloomberg Economics forecast for a 1.6% drop.<\/p>\n
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Chinese factory deflation eased for the first time in six months in August amid a government campaign to reduce overcapacity across the economy. But a continued deceleration in industrial output growth may have offset any benefits to company bottom lines.<\/p>\n
The increase in industrial profits in the first eight months was \u201cdriven by multiple factors including the effective implementation of macroeconomic policies, the deepening advancement of a unified national market, and the low base from the same period last year,\u201d NBS analyst Yu Weining said in a separate statement.<\/p>\n
The equipment manufacturing sector has been seeing profit growth across almost all industries, with railway, shipbuilding and aerospace companies gaining 37.3% in the first eight months, NBS data showed.<\/p>\n
The steel industry returned to the black as rebounding demand and prices coupled with falling costs sent profits at raw material manufacturers up 22.1% on year during the January-August period, 10 percentage points faster than in the first seven months of the year, Yu added. Earnings of consumer product manufacturing companies also rebounded by 1.4%, from a 2.2% drop in first seven months.<\/p>\n
The outlook for profits at Chinese factories, mines and utilities remains clouded by subdued domestic demand and uncertainty around US tariffs.<\/p>\n
Chinese growth has been cooling into the third quarter. Infrastructure spending is losing steam and worsening a slowdown driven by a years-long property slump, likely further weakening demand for key industrial goods such as steel and cement.<\/p>\n
–With assistance from Tian Ying.<\/p>\n
(Adds more data from fifth paragraph.)<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Chinese industrial profits surged after months of declines, signaling that national campaigns to tackle overcapacity and…\n","protected":false},"author":2,"featured_media":46819,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[971,72,113,61,60,34493],"class_list":["post-46818","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bloomberg","tag-business","tag-economy","tag-ie","tag-ireland","tag-yinchuan"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/46818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=46818"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/46818\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/46819"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=46818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=46818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=46818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}