China’s November industrial profits continue to accelerate
Acceleration is attributed to faster growth of sales revenue and rising producer prices
Profits earned by China’s industrial firms continued to accelerate in November, rising 14.5% from a year earlier, the National Bureau of Statistics (NBS) said on Tuesday.
The latest industrial profit figure of 774.6 billion yuan (US$111 billion) which covers large enterprises with annual revenues of more than 20 million yuan from their main operations, follows a 9.8% year on year increase in October and a 7.7% rise in September.
Overall, industrial profits climbed 9.4% in the first 11 months from the same period a year earlier, to 6.03 trillion yuan, up from an 8.6% rise in the first 10 months of the year.
The acceleration is attributed to faster growth of sales revenue, rising producer prices and the strong profit growth in chemical, coal and general equipment sectors.
According to Bloomberg, the stronger profits came as factory inflation rebounded 3.3% in November, the fastest in five years, on surging coal and metal prices, which will help the manufacturers to pay off debt and to invest more, while delaying efforts to reduce excess capacity.