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.

Key Insights

• 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.”

To contact Bloomberg News staff for this story: Lin Zhu in Beijing at lzhu243@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, James Mayger

©2019 Bloomberg L.P.

With assistance from Bloomberg