Chinese manufacturing profits plummet: November profits fall 13.1%; biggest fall in more than a year – The Times of India

China’s industrial companies saw their profits fall 13.1 percent in November from last year, marking the sharpest decline in more than a year. The decline came despite strong exports, highlighting the country’s ongoing economic problems and increasing pressure for more government support. The National Bureau of Statistics released these figures on Saturday, as quoted by Reuters.The decline was worse than October’s 5.5 percent. This trend comes at a time when China faces persistent factory deflation and weak consumer spending. During the first eleven months of the year, industrial profits showed little growth, showing an increase of only 0.1% compared to the 1.9% growth of the previous year.“Earnings data show a broader slowdown in economic activity in the fourth quarter, mainly due to negative domestic demand,” said Xu Tianchen, senior economist at the Economist Intelligence Unit. However, Xu remained cautiously optimistic about future profits, suggesting companies may find more opportunities abroad.Despite this, there were some industries that managed to make gains. The automotive industry posted a profit increase of 7.5 percent, while the high-tech industry recorded a 10 percent increase. The coal mining industry saw a huge decline in profitability of 47.3 percent.An estimate from think tank Rhodium Group, cited by Reuters, points to 2.5 to 3 percent growth in the Chinese economy this year, which is about half of officially indicated growth.Chinese policymakers are now promising more support. At a recent meeting, they pledged to continue pursuing a “proactive” fiscal policy next year. The government has also committed to improving employment, boosting consumption, stabilizing prices and helping the struggling real estate market.NBS chief statistician Yu Weining noted that industrial companies still need stronger support, especially given the uncertain global environment and ongoing changes in growth engines. The data covers companies that generate at least 20 million yuan ($2.85 million) in revenue annually from their main businesses.