Home / Knowledge / News / Textiles / China's industrial profits fall 4.6% as economy slows down
China's industrial profits fall 4.6% as economy slows down
30
Nov '15
China's industrial profits sharply declined by 4.6 per cent year-on-year in October, widening the 0.1 per cent drop in September, leading to a further delay in the economic rebound than expected and adding to the corporate debt default risk, according to reports in the Chinese media.

The sluggish data reported by the National Bureau of Statistics was mainly driven down by the energy-and commodity-intensive industries with problems of overcapacity, including oil, steel and coal.

But the high-tech manufacturing industry achieved 14.2 per cent year-on-year profit growth. Profits in the equipment manufacturing industry increased by 8.6 percent, the NBS said.

In the first 10 months, the country's industrial profits shrank 2 per cent from a year earlier, reaching a total of 4.87 trillion yuan ($785 billion).

He Ping, a researcher at the bureau, blamed slowing sales, diminished benefit from the yuan's devaluation, and increasing operational costs for the fall in profits.

“China's industrial profits deteriorated significantly last month,” He said. “Industries including refinery, steel and coal reported much higher losses in October due to the dual impact of weak domestic demand and the country's efforts to reduce overcapacity.”

A series of economic indicators in October suggested that the world's second-largest economy has not yet seen any rebound after GDP hit a six-year low of 6.9 per cent in the third quarter, although the government has made efforts to support growth through both monetary and fiscal measures.

Manufacturing sales fell 1.4 per cent year on year in October, widening from the 0.5 per cent dip a month earlier. Operational costs increased 0.04 yuan from a year earlier to 85.84 yuan per 100 yuan of sales.

The latest economic activity data revealed renewed signs of weakness as the growth of industrial production and fixed-asset investment eased in October and retail sales were almost flat from a month earlier.

Industrial production rose 5.6 per cent last month, down from 5.7 per cent in September.

Fixed-asset investment added 10.2 per cent to 44.7 trillion yuan in the first 10 months, easing from the 10.3 per cent gain in the first three quarters.

The official Purchasing Managers' Index, a gauge of comprehensive operational conditions in the state-owned manufacturing sector, was 49.8 last month, flat from September, pointing at weakening industrial activities for the fourth straight month.

Meanwhile, the Producer Price Index, a factory-gate gauge of inflation, shed 5.9 per cent from a year earlier in October, to notch a 44th straight month of decline. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 27th Jun 2017

Govt defers tax deduction at source provision under GST

E-commerce players in India will not be required to deduct tax on...

Apparel/Garments | On 27th Jun 2017

Future Group aims Rs 12,000 crore in fashion business

Future Group, which runs retail stores across India under various...

Textiles | On 27th Jun 2017

AEPC & NSDL to help exporters with GST compliances

Apparel Export Promotion Council (AEPC) and National Securities...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
July 2017

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search