China sees slow growth in June industrial profit
China’s economic recovery faces a new bump in the road as profit from its industrial firm slowed for the fourth straight month in June due to high raw material prices.
Tuesday’s data from the National Bureau of Statistics showed a 20% year-on-year increase in industrial firms’ profits to 791.8 billion yuan ($122.27 billion) in June. This follows a 36.4% growth in May.
After recovering from previous disruptions, the Chinese economy grapples anew with problems in raw material costs and global supply chain.
Industrial firms’ profits climbed a whopping 66.9% in the first half of 2021, recovering from a contraction in the same period last year.
China’s factory activity slowed in June caused by the COVID-19 restrictions in the export province of Guangdong that limited port processing capacity.
The NBS data showed metal processing, chemicals, and pharmaceutical industries as the biggest drivers in June profit growth.