Summary China’s industrial profit growth quickens in July 2024 theedgemalaysia.com
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China's industrial profit grew in July 2024, but its export recovery faces challenges, prompting Beijing to focus on consumption-driven economic stimulus.
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Slide Presentation (11 slides)
Key Points
- China's industrial profit growth quickened in July 2024, rising 4.1% from a year earlier compared to a 3.6% rise in June
- Industrial profits expanded slightly faster at 3.6% in the January-July period compared to 3.5% in the first half, offering some hope of improving momentum
- Sluggish domestic demand continues to weigh on China's economic recovery, with tamer shipments last month raising concerns over the country's export-driven recovery
- China's July bank loans recorded the first contraction in 19 years, further highlighting the weakness in domestic demand
- Beijing is looking to pivot its stimulus towards boosting consumption amid the lacklustre demand, prolonged housing downturn, and employment worries
Summaries
21 word summary
China's industrial profit grew 4.1% in July 2024, but export recovery faces headwinds. Beijing aims to boost economy through consumption-focused stimulus.
49 word summary
China's industrial profit growth accelerated in July 2024, rising 4.1% year-on-year. However, the export-driven recovery faces headwinds, with weaker shipments and the first contraction in bank loans in 19 years. Amid sluggish demand, Beijing aims to boost the economy through consumption-focused stimulus, though challenges remain in China's recovery efforts.
105 word summary
China's industrial profit growth accelerated in July 2024, rising 4.1% year-on-year after a 3.6% increase in June. Profits expanded slightly faster at 3.6% in the January-July period compared to 3.5% in the first half. However, the country's export-driven recovery faces headwinds, with weaker shipments and the first contraction in bank loans in 19 years. Electric vehicle battery giant CATL saw faster profit growth but falling revenue as EV sales slow. Amid sluggish demand, housing downturn, and employment worries, Beijing aims to boost the economy through consumption-focused stimulus. State-owned firms, foreign firms, and private-sector companies all reported profit increases, though challenges remain in China's recovery efforts.
259 word summary
China's industrial profit growth quickened in July 2024, offering some hope of improving momentum amid sluggish domestic demand. Profits in July jumped 4.1% from a year earlier, following a 3.6% rise in June, according to data from the National Bureau of Statistics (NBS).
For the January-July period, profits expanded slightly faster at 3.6% compared with 3.5% in the first half. This comes as the country's export-driven recovery faces headwinds, with tamer shipments last month raising concerns over frail domestic demand.
China's July bank loans also recorded the first contraction in 19 years, further highlighting the economic challenges. Electric vehicle (EV) battery giant CATL saw faster profit growth in the second quarter, but its revenue fell at a faster clip during the quarter as EV sales slow in the world's largest auto market.
Amid the lacklustre demand, a prolonged housing downturn, and employment worries, Beijing is looking to pivot its stimulus towards consumption. At a cabinet plenary session earlier this month, Premier Li Qiang vowed to boost the economy with a focus on consumption.
The data showed state-owned firms booked a 1% rise in profits in the first seven months, while foreign firms posted a 9.9% gain and private-sector companies saw profits up 7.3%. The industrial profit numbers cover firms with annual revenue of at least 20 million yuan (US$2.8 million, or RM12.2 billion) from their main operations.
Overall, the quickening of industrial profit growth in July offers some optimism, but the broader economic challenges, including sluggish domestic demand and the housing downturn, continue to weigh on China's recovery efforts.
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