July 27, 2020

Chart of the Week: China’s industrial profits up again in June

by Fathom Consulting.

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Data released in China this week showed that, in the twelve months to June, industrial profits grew by 11.5%. This is the second straight month of year-on-year expansion of profits, and illustrates the recovery in the stimulus-fuelled production economy. However, this strong growth has not offset the COVID-19 induced weaknesses from the start of the year. Profits in the first half of this year are still 12.8% lower relative to the first half of 2019. This hit to profits was felt across the industrial economy, with 31 out of the 41 sectors surveyed reporting a contraction.



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