China's industrial sector profit down sharply in July: National Bureau of Statistics
27 Aug 2012
Profits at China's industrial sector were down sharply in July, in another sign that flagging domestic and external demand had further weighed on corporate earnings and reinforcing calls for continued policy easing to underpin the slowing economy.
Combined industrial profits were down 5.4 per cent in July from a year ago, quickening from 1.7 per cent in June 1.7 per cent, taking the slide into a fourth month, the National Bureau of Statistics said today.
Profits at Chinese firms' declined as the economy has slowed, even as the government is engaged in a fine tuning exercise to try to keep growth on track.
Weak economic data in July had increased worries that a stabilising trend of the economy might have not yet taken root and the slowdown might run into a seventh straight quarter in the July-September period.
According to some analysts, by reckoning of historical standards the data was weak and pointed to poor performance of the economy. They say the numbers may see the government go for measures, including accelerating disbursement of export tax rebates and expanding export credit insurance.
According to Chinese premier Wen Jiabao, the government would launch new measures to stabilise export growth in the third quarter.
To boost the economy, the government had fast-tracked investment spending on key projects, slashed the amount of cash banks needed to hold as reserves by 150 basis points in three steps and lowered interest rates twice over a period of one month.
