China’s January-November industrial earnings data shows worsening crisis


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BEIJING — Profits for Chinese industrial companies contracted further in the January-November period, when strict COVID 19-related restrictions disrupted factory activity and supply chains as the virus spread through industries. major manufacturing centers.

Industrial profits fell 3.6% in January-November from a year earlier to 7.7 trillion yuan ($1.11 trillion), according to data released by the National Bureau of Statistics on Tuesday. (NBS). That compares with a 3.0% drop for January-October.

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The negative data reflects the toll that antivirus has held back in many cities last month, including major manufacturing hubs Guangzhou and Zhengzhou, took on the world’s second-largest economy, adding to the damage from a protracted housing crisis and slowing exports.

Industrial production last month rose just 2.2% from a year earlier, missing expectations of a 3.6% gain in a Reuters poll and slowing significantly from growth in 5.0% observed in October.

Although Beijing dropped some of the world’s toughest virus restrictions in early December and announced on Monday that it would stop requiring incoming travelers to self-quarantine from January 8, the economy is still expected to struggle during the winter months. the population is infected and unable to work while recovering.

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Business confidence in China has fallen to its lowest level since January 2013, a survey showed last week, reflecting the impact of the surge in COVID cases on economic activity.

At this year’s closed-door Central Economic Work Conference, top leaders and policymakers pledged to step up policy adjustments to support the slowing economy. But with companies anticipating a global recession in 2023 and the impact of a rise in domestic COVID infections, analysts say it may take at least another quarter before things turn around.

China’s economic growth was just 3% in the first three quarters of this year and is expected to remain around that rate for the full year, one of its worst years in nearly half a year. century.

Industrial profit data covers large enterprises with annual revenues exceeding 20 million yuan through their core businesses.

The bureau has not released standalone monthly figures since July. ($1 = 6.9601 Chinese yuan renminbi) (Reporting by Joe Cash and Ellen Zhang; Editing by Edmund Klamann)



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