BEIJING: China's industrial profits fell in October, after two months of growth, official data showed on Thursday, as businesses grappled with lacklustre domestic demand and an export downturn.
The drop could fuel calls for more government support measures to encourage domestic consumption and wean the manufacturing powerhouse off its reliance on exports as China confronts tariffs and growing trade barriers.
Industrial profits at China's industrial firms declined 5.5% year-on-year in October, data from the National Bureau of Statistics showed on Thursday, after jumping 21.6% in September and 20.4% in August.
The downturn highlights persistent domestic challenges facing the world's second-largest economy, even as U.S.-China trade tensions show signs of easing. Growth momentum has faltered sharply, with third-quarter economic expansion slowing to its weakest pace in a year.
Growth in industrial profits was 1.9% in the first 10 months versus a 3.2% rise in the January-September period.
Official data released earlier this month showed underwhelming growth in October retail sales despite an eight-day national holiday and the start of the month-long Singles' Day sales festival.
Producer deflation eased in October but prices remained in contraction compared with the same period last year, and factory output grew at the weakest annual pace since August 2024.
Chinese leaders have signalled a sharper shift towards supporting consumption over the next five years, but have yet to inject new large-scale stimulus to this end. Meanwhile, elevated unemployment rates for young people as well as a prolonged property market downturn continue to dampen sentiment.
State-owned firms saw profits unchanged in the first 10 months. Private-sector firms posted a 1.9% increase while foreign firms recorded a 3.5% rise, the data showed.
Industrial profit figures cover firms with annual revenue of at least 20 million yuan ($2.82 million) from their main operations. ($1 = 7.0822 Chinese yuan) - Reuters
