Data published by the National Bureau of Statistics of China showed that last month, the profit of China's industrial enterprises grew again, but at a slower pace than in October.
According to the report, industrial profit increased by 9.0% per annum in November, compared with an increase of 24.6% per annum in October. Meanwhile, from the beginning of the year (to November), industrial profit increased by 38% per annum after an increase of 42.2% per annum from January to October. Economists had expected an increase of 34% per annum. Profits continued to grow for both state-owned industrial firms (65.8%) and private-sector (27.9%). Among the 41 industries surveyed, 33 saw profit rises.
The economist at the National Bureau of Statistics said that despite the government's efforts to curb the rise in wholesale prices, which have reduced costs in the processing and marketing industries, the restrictions mean that the contribution of the mining and raw materials sectors to the overall growth of industrial profits has decreased.
Producer inflation in China weakened slightly in November amid tough government measures. However, the Chinese economy still faces many challenges, as the downturn in the real estate sector worsens, supply bottlenecks persist and strict restrictions related to COVID-19 negatively affect consumer spending.