Sina
Edition: CHINA ASIA USA EUROPE AFRICA
Home > Business
Friday, August 28, 2015, 14:53

China's industrial profit decline quickens in July

By Xinhua
China's industrial profit decline quickens in July
China's industrial profit decline quickens in July
China's industrial profit decline quickens in July

BEIJING - Profits of China's major industrial firms fell 2.9 percent year on year in July, sharply down from 0.3 percent decline posted in June, the National Bureau of Statistics (NBS) said on Friday.

Profits at industrial companies with annual revenues of more than 20 million yuan (about US$3.1 million) totaled 471.6 billion yuan in July.

Industrial profits of these firms dropped one percent from one year earlier to 3.3 trillion yuan in the first seven months, the NBS said. The decline widened from 0.7 percent decrease registered in the first half of the year.

During the first seven months, industrial profits dropped one percent from a year earlier, compared with a fall of 0.7 percent registered in the first half of the year, the NBS said.

The weakness in industrial profit growth may further lower entrepreneur confidence, curb manufacturing investment and have negative implications for companies' cash flow and government tax revenue, experts said.

To lower corporate funding costs and bolster economic growth, the central bank announced on Tuesday it will cut benchmark interest rates, the fifth cut since November, and lowered the amount of cash banks need to set aside.

The easing monetary policy is taking effect, with companies' interest payments shrinking 3.1 percent year on year in July, the NBS said.

Despite overall weakness, the high-tech manufacturing and consumer goods sectors posted strong profit gains, which rose 8.4 percent and 7.5 percent year on year, respectively, it said.

Latest News