Profits of industrial companies in China decrease by 8.4% in November

BEIJING

Industrial companies' profits in China fell by 8.4% in November on a yearly basis, continuing the downward trend in the previous three months.

According to a National Bureau of Statistics (NBS) statement, the total profit of industrial enterprises with an annual turnover of more than 20 million yuan (about $2.74 million) reached 6.67 trillion yuan (about $913 billion) in the January-November period of 2024.

Total profits fell by 4.7% in the first 11 months compared to the same period last year, adding to the 4.3% drop in the previous 10 months.

Profitability decreased by 8.4% in state-owned companies and 1% in private sector enterprises.

Profits of industrial companies fell by 17.8% in August, 27.1% in September and 10% in October.

The decline in industrial profitability shows that chronic problems such as weak domestic demand, deflation and the decline in the real estate sector continue to negatively affect economic growth in China, which has the world's largest industrial production.

Although the government and institutions responsible for economic growth in China have taken steps to encourage economic growth with some stimulus measures since the end of September, it is seen that their effects have not yet been reflected in the real economy.

Chinese economy grew by 4.8% in nine months, performing below the government's growth target of "around 5%" for this year.

*Writing by Mucahithan Avcioglu in Istanbul