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

Content of the article

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.

Content of the article

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.

Content of the article

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)