Copyright Getty Images
Industryweek 22705 China Made G

China Industrial Profits Growth Accelerates on Better Sales

June 27, 2017
China’s exports remain robust as demand in U.S. and European markets improves, helping to boost economic sentiment.

China’s industrial profits rose 16.7% in May from a year earlier as global demand improved, helping to fill companies’ order books.

Earnings increased to 626 billion yuan (US$91.5 billion), the National Bureau of Statistics said Tuesday. That compares with a 14% gain in April and 8.5% growth last year.

Economists forecast slower factory inflation in China in the second half this year, which would dent industrial profits and further erode the global reflation process that had been underway since last year. Still, China’s exports remain robust as demand in U.S. and European markets improves, helping to boost economic sentiment.

"Ongoing economic reforms may help support China’s longer-term growth prospects and accelerate China’s transition to a consumer-driven economy," according to a report written by China International Capital Corp. economists led by Liang Hong. CICC said they maintain the forecast that gross domestic product will expand at 6.8% this year.

Profit growth is accelerating because of improving sales and better investment returns, defying slower factory inflation, according to a statement posted on the NBS’s website.

While average input cost for larger companies in their main business is declining, costs for smaller firms are rising, which has "raised concerns," the bureau said in its statement.

By Bloomberg News

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!