China's Industrial Profits Slow to 4.2% in August as Energy Costs Rise
Updated
Updated · CNBC · Sep 28
China's Industrial Profits Slow to 4.2% in August as Energy Costs Rise
3 articles · Updated · CNBC · Sep 28
Summary
China’s industrial profits rose 4.2% in August from a year earlier, the weakest monthly gain this year and a fourth straight slowdown from April’s 24.7% pace.
Persistent weak consumer demand and higher energy costs squeezed manufacturers, while January-August profit growth eased to 15.7% from 17.6% in the first seven months.
A 110% profit jump in computer, communication and electronics manufacturing helped sustain overall gains, but auto-sector profits fell 16% amid intense price competition.
The slowdown fits broader economic weakness: second-quarter growth hit its slowest pace in more than three years, manufacturing contracted in July and August, and economists expect more stimulus from Beijing.