China industrial profits slow in September, signals growing pessimism in business activity

Industrial profits in China slowed during the month of September, showing signs of growing pessimism in the business activity of the world’s second-largest economy. However, profits rose on a yearly basis, owing to a boost in steel and refining, even as last month’s earnings slowed from a three-year high.

China’s industrial profits in September eased 7.7 percent to CNY577.1 billion, slowing sharply from August's 19.5 percent jump, data released by the National Bureau of Statistics (NBS) showed Thursday. However, profits during the January-September period rose 8.4 percent from a year earlier to CNY4.64 trillion (USD685 billion), data showed.

Total profits for the first nine months stood at CNY4.64 trillion yuan (USD684.77 billion), up 8.4 percent from the same period a year ago, the same pace as in the January-August period. Further, Chinese industrial firms' liabilities at the end of September were 4.7 percent higher than at the same point last year.

Steel production is leading the charge with a 272.4 percent jump in the first nine months versus a year ago, followed closely by a 263.8 percent jump in oil refining earnings.

Meanwhile, China has posted three straight quarters of 6.7 percent growth, keeping the expansion on track to meet the government’s objective.