China’s industrial profits extend decline for fourth consecutive month, falling 7.3% in November

China’s industrial benefits They extended the declines for the fourth consecutive month, falling 7.3% in November from a year earlier, indicating that Beijing’s stimulus measures have not yet significantly curbed the decline in corporate profits.

Benefits fell 10% year-on-year in October after a 27.1% drop in September – its steepest drop since March 2020 according to information from Wind.

Industrial profits are a key indicator of the financial well-being of factories, utilities and mines in China. The earnings show how companies’ balance sheets are stacking up after Beijing’s measures aimed at stimulating the economy.

Despite a series of stimulus measures introduced since the end of SeptemberRecent economic data from China indicates that the world’s second-largest economy continues to struggle with disinflation, driven by weak consumer demand and a prolonged housing market slowdown.

China’s consumer inflation fell to its lowest level in five months in November, while the country’s export and import data lost expectations. China The latest retail sales data also disappointed.forecasts are missing.

However, some parts of China’s economy have shown signs of recovery, with manufacturing activity expanding during two months in a row and hit a five-month high in November.

Earlier this month, China’s top officials pledged to a key meeting to set the economic agenda step up monetary easing efforts, including lowering interest rates to support the weakened economy.

He The World Bank on Thursday raised its forecast for China’s economic growth in 2024 and 2025, reflecting recent policy adjustments. It now expects China’s GDP to grow 4.9% in 2024 compared to its previous projection of 4.8%, while in 2025, China’s GDP is expected to grow 4.5%, higher than the forecast organization’s previous 4.1%.

However, the World Bank warned that China’s beleaguered real estate sector, along with weak household and business confidence, will remain obstacles to its growth.