Industrial profits in China eased in May, slowing further from April’s pace that added to concerns that the world’s second-largest economy may be losing some momentum as global turmoil, instability and Brexit may have weighed on business sentiments to reduce revenues, thereby, staggering profits.
Profits of Chinese industrial companies rose 3.7 percent in May from a year earlier, slowing from April's pace. Profits in May rose to 537.2 billion yuan (USD81.21 billion), data released by the National Bureau of Statistics showed Monday. Also, profits rose 6.4 percent in the first five months of this year compared with the same period last year, data showed.
However, the industrial performance remained uneven across different sectors. Profits in the mining sector fell 93.8 percent from a year earlier, while that of the coal mining sector grew 2.5 times from a year earlier, snapping a falling streak over the past few years. Meanwhile, Industrial profits in January-April rose 6.5 percent from a year earlier, with April up 4.2 percent.
"Growth in industrial profits slowed down slightly in May compared with the previous month, but positive changes have emerged from the industrial sectors," said He Ping, Official, National Bureau of Statistics.
Debt among Chinese industrial firms at the end of May was 4.9 percent higher than at the same point last year. The central government of the country is expected to sweep in 27.64 billion yuan to help local governments pay for capacity closures in these two sectors this year.
Meanwhile, producer prices witnessed the slowest pace in May since November 2014, supported by a government investment spree and higher commodity prices. On a monthly basis, producer prices rose for the third consecutive month by 0.5 percent.
