Industrial profits in China declined at a slower rate last month, suggesting that government efforts to reduce overcapacity may be easing competitive pressures, reported Hong Kong’s South China Morning Post.
Data released Wednesday by the National Bureau of Statistics showed a 1.5 per cent year-on-year drop in industrial profits for July, the smallest contraction since May. For the January to July period, profits fell 1.7 per cent compared to the same period last year.
Manufacturing sector profits rose 6.8 per cent in July, accelerating from a 1.4 per cent gain in June, according to statistician Yu Weining. Producers of raw materials, steel and petroleum posted profits after earlier losses, though mining sector earnings continued to decline.
“Policy measures to promote a reasonable rebound in prices were gradually implemented, driving corporate profitability to recover continuously,” said Mr Yu.
