Chinese Industrial Companies’ Profits Fall By Most On Record
(Bloomberg) -- Profits at Chinese industrial enterprises fell for a third straight month, dropping by the most since at least 2011 as producer prices continue falling and domestic demand slows.
- Industrial profits dropped 9.9% in October, after September’s 5.3% decrease, data from the National Bureau of Statistics showed Wednesday.
- Prices at the factory gate declined 1.6% in October and that deflation is expected to continue this month
- “Extended deflation in producer prices is likely to keep downward pressure on profits,” Bloomberg Economist David Qu said in a note before the data. “Looking ahead, the low base will continue to support the year-on-year comparisons.”
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