China's Industrial Profit Rose in April as Stimulus Measures Kicked In
China's industrial profit rose in April, reversing a decline from the previous month, as Beijing's stimulus measures started to kick in and foreign demand for Chinese products improved.
Profits at China's industrial companies rose 4.0% in April from a year earlier, compared with a 3.5% drop in March, according to data from the National Bureau of Statistics on Monday.
In the first four months of the year, industrial profit rose 4.3% from a year earlier, stronger than the 2.3% drop recorded for the full year of 2023, official data showed.
The profit numbers come after China reported mixed figures earlier this month that showed a lopsided economic recovery, with robust industrial output and tepid consumption, as Beijing doubled down on its manufacturing drive. Official data also showed China's outbound shipments in April rose 1.5% from a year ago, reversing from a 7.5% drop in March.
More than 70% of China's industrial sectors saw rising profits in the first four months of the year, with the equipment manufacturing sector continuing to serve as the main contributor to overall growth. Profits in the electronics and auto subsectors grew 75.8% and 29.0%, respectively, during the January-April period.
Profit growth for China's consumer manufacturing sector also accelerated, at 12.0% in the first four months, up from a 10.9% gain in January-March, as domestic demand and exports improved.
State-owned industrial companies reported a 2.8% decline in profits in the first quarter, widening from a 2.6% fall in the first quarter, said the statistics bureau. Foreign companies saw a 16.7% increase in profits in the first four months, down from an 18.1% gain in the first three months. Profits of private companies rose 6.4%, up from the 5.8% growth in the first quarter.
Despite the upbeat figures, China's statistics bureau cautioned in a statement that the country's domestic demand is still weak, the external environment remains complex, and the foundation for the recovery of industrial enterprises' profits still needs to consolidate.
Write to Singapore Editors at singaporeeditors@dowjones.com
(END) Dow Jones Newswires
May 26, 2024 22:35 ET (02:35 GMT)
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