BEIJING (Reuters) – China’s industrial profits fell at a slower clip in November, official data showed on Friday, as policymakers pledged stronger support to prop up a faltering economic recovery.
The world’s second-largest economy has been struggling to mount a strong post-pandemic revival, as business and household appetites for spending and investment remain subdued amid a prolonged housing downturn and fresh trade risks from the incoming U.S. administration of President-elect Donald Trump.
Industrial profits fell 7.3% in November from the same month last year, following a 10% drop in October, while a 4.7% decline in the first 11 months extended a 4.3% slide in the January-October period, National Bureau of Statistics (NBS) data showed.
A spate of economic indicators released this month pointed to mixed results, with industrial output accelerating in November while new home prices fell at the slowest pace in 17 months.
China’s leaders vowed in a key policy meeting this month to raise the deficit, issue more debt and loosen monetary policy to maintain a stable economic growth rate. The government also recently pledged to step up direct fiscal support to consumers and boosting social security.
Beijing has agreed to issue a record $411 billion special treasury bonds next year, Reuters reported.
Profits at state-owned firms fell 8.4% in the first 11 months, foreign firms posted a 0.8% decline and private-sector companies recorded a 1% fall, according to a breakdown of the NBS data.
Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.7 million) from their main operations.
($1 = 7.2988 Chinese yuan renminbi)
(Reporting by Yukun Zhang, Qiaoyi Li and Ryan; Editing by William Mallard and Shri Navaratnam)
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