In October 2024, China’s industrial profits fell by 10% compared to the previous year, indicating that the stimulus measures have not yet countered the downturn in corporate earnings.
This decline represents the third consecutive month of falling profits, succeeding a 27% year-on-year drop in September 2024, which was the most significant decrease since March 2020.
Industrial profits serve as an important indicator of the financial health of China’s factories, mines, and utilities.
For the first ten months, profits at China’s industrial companies saw a 4.3% reduction from the previous year, as reported by the National Bureau of Statistics of China on Wednesday 27th November 2024. This is in contrast to a 3.5% decrease reported up to September 2024.
The statistics bureau reportedly noted that the less severe decline in October 2024 was due to the application of Beijing’s stimulus measures.
The second-largest economy in the world expanded at its most modest rate in the third quarter since early 2023, struggling with subdued domestic consumption and an extended slump in the housing market.
However, retail sales in October 2024 exceeded forecasts with a 4.8% increase compared to the same period last year, and there was an improvement in the unemployment rate.
