China industrial profit growth accelerates in Sept despite cost pressures
Profits at China’s industrial firms rose at a faster pace in September even as surging raw material prices and supply bottlenecks squeezed margins and weighed on factory activity. Profits jumped 16.3% on-year to 738.74 billion yuan ($115.72 billion) the statistics bureau said on Wednesday, quickening from the 10.1% gain reported in August.
Profits at China’s industrial firms rose at a faster pace in September even as surging raw material prices and supply bottlenecks squeezed margins and weighed on factory activity.
Profits jumped 16.3% on-year to 738.74 billion yuan ($115.72 billion) the statistics bureau said on Wednesday, quickening from the 10.1% gain reported in August.
See Zee Business Live TV Streaming Below:
The industrial sector has been hit by the surging price of coal, supply shortages and power rationing triggered by coal shortages due to emission reduction targets.
But Beijing has taken a raft of measures to curb elevated metals prices and ease the country`s power crunch, including urging coal miners to boost output and manage electricity demand at industrial plants.
In October, the government said that it will allow coal-fired power prices to fluctuate by up to 20% from base levels, enabling power plants to pass on more of the high costs of generation to commercial and industrial end-users.
For the January-September period, industrial firms` profits grew 44.7%% year-on-year to 6.34 trillion yuan, slowing from a 49.5% increase in the first eight months of 2021, the statistics bureau said.
China’s economic growth in the third quarter was the slowest this year, due partly to power shortages and wobbles in the property sector.
Record high factory inflation in September is putting a strain on middle and downstream businesses to pass through costs to consumers.
Analysts polled by Reuters expect the People`s Bank of China to refrain from attempts to stimulate the economy by reducing the amount of cash banks must hold in reserve until the first quarter of 2022.
Liabilities at industrial firms rose 8.2% from a year earlier at end-September, easing from 8.4% growth as of end-August.
The industrial profit data covers large firms with annual revenues of over 20 million yuan from their main operations.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
Power of Compounding: How soon will monthly SIP of Rs 6,000, Rs 8,000, and Rs 10,000 reach Rs 5 crore corpus target?
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
08:16 AM IST