Foreign media: China's industrial profits surged in August!

Bloomberg reports that after several months of decline, China's industrial profits rebounded sharply, indicating that the country's actions to address overcapacity and cutthroat competition have shown results.

Industrial profits in August increased by 20.4% year-on-year, with a cumulative growth of 0.9% for the first eight months of the year, exceeding the Bloomberg economists' expectation of a 1.6% decline.

However, the profit outlook for Chinese factories, mines, and utilities is still affected by weak domestic demand and the uncertainty of U.S. tariffs.

The National Bureau of Statistics released data on Saturday showing that industrial profits in August increased by 20.4% year-on-year, marking the first growth in four months.

For the first eight months of this year, the cumulative growth was 0.9%, significantly better than expected.

At the same time, the deflation in factory-gate prices in China has seen a缓解 for the first time in six months under the government's capacity reduction efforts.

However, the continued slowdown in industrial output growth may offset some of the positive effects.

National Bureau of Statistics analyst Yu Weining stated in a statement that the growth in industrial profits for the first eight months was driven by multiple factors, including the effective implementation of macroeconomic policies, the deepening of the national unified market, and the low base effect from the same period last year.

Almost all industries in the equipment manufacturing sector achieved profit growth, with railway, shipbuilding, and aerospace companies seeing a 37.3% year-on-year increase in profits for the first eight months.

The steel industry turned a profit due to increased demand and rising prices, as well as reduced costs, while the raw materials manufacturing sector saw a 22.1% year-on-year increase in profits for the first eight months, with an acceleration of 10 percentage points compared to the first seven months.

Profitability of consumer goods manufacturing companies also shifted from a 2.2% decline in the first seven months to a 1.4% growth.

Despite this, weak domestic demand and the uncertainty of U.S. tariffs continue to cast a shadow over the profit prospects of factories, mines, and utilities.

Entering the third quarter, China's economic growth continues to cool down. Weak infrastructure investment, coupled with the ongoing real estate slump, may further weaken demand for key industrial products such as steel and cement.

Original: www.toutiao.com/article/1844459602563140/

Statement: This article represents the views of the author himself.