Profits at China’s Industrial Firms Surge After 2020 Lockdown
(Bloomberg) -- Profits at Chinese industrial firms soared in the first two months of the year, largely due to the low base a year ago when the economy was paralyzed by the coronavirus outbreak, as well as a boost in exports.
Industrial profits climbed 179% in January and February from a year earlier, the National Bureau of Statistics said Saturday. The agency releases combined data for the two months in an attempt to smooth out volatility associated with the Lunar New Year holiday.
- After a sharp decline in the first quarter of 2020, profits steadily picked up during the year as industrial production recovered and export demand climbed. Profits surged 20.1% in December from a year ago
- Businesses are also starting to benefit from higher prices, especially for commodities. Producer prices rose at the fastest pace in more than two years in February, helping to boost profitability
- Profits at state-owned firms grew 182%, while those at private companies grew 137%, and foreign-invested business rose 219%
- The acceleration in recovery of profits was due to the combined effects of a stable recovery of domestic and overseas demand, low base last year, and more people spending the Lunar New Year without travel, NBS official Zhu Hong said in the statement
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