SHANGHAI (Reuters) – Profits at Chinese industrial companies slipped in July, reversing previous gains as new COVID-19 19 containment measures weighed on demand and Factory profits were squeezed, while power shortages caused heatwaves to threaten production.
The National Bureau of Statistics said that the profits of Chinese industrial enterprises fell 1.1% year-on-year in the January-July period, offsetting a 1.0% increase in the first six months
The bureau did not report Separate data for July.
Factory production and activities in major manufacturing hubs such as Shenzhen and Tianjin took a hit this month with the imposition of Covid-19 restrictions.
In July, China’s industrial output growth slowed to 3.8% YoY from 3.9% in June.
A searing heatwave has swept across China’s vast Yangtze River basin since mid-July, battering densely populated cities from Shanghai to Chengdu.
Debt of industrial enterprises surged year-on-year 10.5% earlier in July, compared with June’s 10.5% growth is comparable, the Bureau of Statistics said.
China’s economy narrowly escaped contraction in three months in June, as strict COVID-19 containment restrictions and a struggling real estate sector hit demand.
Policymakers are trying to shore up a flagging economy by doubling down on infrastructure spending.
Industry profit data covers large enterprises with annual revenue exceeding 20 RMB 3 million (USD 3 million), whose main Business is an operation.
($1 = 6.8715 RMB RMB)