China Industrial Profits Keep Pace as Factory Inflation Holds Up
China’s industrial profits increased 16.5% in July from a year earlier.
(Bloomberg) -- Chinese industrial firms maintained a profit surge, underscoring the economy’s resilience even amid slowing factory output and investment.
Industrial profits increased 16.5 percent in July from a year earlier, versus the 19.1 percent pace a month earlier, the nation’s statistics bureau said Sunday.
The robust earnings are giving policy makers room to combat excessive industrial capacity and curb speculative borrowing ahead of the key Party Congress this fall. That picture may not be sustainable though, as slowing producer inflation and rising real interest rates may squeeze factories and mills in the coming months.
To contact Bloomberg News staff for this story: Xiaoqing Pi in Beijing at xpi1@bloomberg.net, Judy Chen in Shanghai at xchen45@bloomberg.net.
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Jeff Kearns
With assistance from Xiaoqing Pi, Judy Chen