China’s industrial profits rebound in June after relaxation of COVID rules

China’s industrial profits rebound in June after relaxation of COVID rules

Profits at Chinese industrial firms rose again in June, boosted by a resumption of activity in major manufacturing hubs, but concerns about a resurgence of COVID-19 have cast a shadow on future Chinese output. the factories.

June profits grew 0.8% from a year earlier, recovering from a 6.5% decline in May, according to data released by the Office for National Statistics on Wednesday.

Buoyed by the easing of pandemic restrictions and government stimulus, June data shows that industrial companies are gradually recovering from painful supply chain disruptions in the second quarter.

With the gradual control of the pandemic and the recovery of the industrial chain, the efficiency of industrial enterprises has improved remarkably, Zhu Hong, chief statistician with the statistical institute, said in a statement.

The Chinese economy came to a grinding halt in the April-June quarter, highlighting the colossal toll on activity from widespread lockdowns, which hit domestic consumption and business confidence.

Industrial companies saw their combined profit rise 1% to 4.27 trillion yuan ($631.1 billion) in January-June from the same period a year earlier. The data showed that the growth rate for the first five months was 1.0%.

Melissa Galbraith
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