Slowdown in Chinese firms

Slowdown in Chinese firms

Agency News

Profits earned by China's industrial firms contracted in June after a brief gain the previous month, fuelling concern that a slowdown in manufacturing from a bruising trade war will drag on economic growth.China's industrial profits have been softening since the second half of 2018 as the economy slowed and Sino-US trade dispute escalated, with many industrial firms putting off business decisions and scaling back manufacturing investment.Economic growth in the second quarter slowed to a near 30-year low.

Industrial profits fell 3.1 per cent in June from a year earlier to 601.9 billion yuan (87.5 billion dollars), according to data released by the National Bureau of Statistics, following a 1.1 per cent gain in May.In the first six months, industrial firms earned profits of 2.98 trillion yuan, down 2.4 per cent from a year earlier, compared with a 2.3% drop in January-May.The drop in first-half profits was driven by declining profits in the auto, oil processing and steel sectors, Zhu Hong of the statistics bureau said.