BEIJING (Reuters) – China’s industrial profits grew faster in July, data showed on Tuesday, even as sluggish domestic demand weighs on the recovery in the world’s second-largest economy.
Profits in July jumped 4.1% from a year earlier following a 3.6% rise in June, according to National Bureau of Statistics (NBS) data.
For the January-July period, profits expanded slightly faster at 3.6% compared with 3.5% in the first half, offering some hope of improving momentum amid dreary factory output, export, prices and banking lending numbers earlier in August.
Tamer shipments last month raised a red flag over the country’s export-driven recovery and heightened concerns about frail domestic demand.
China’s July bank loans recorded the first contraction in 19 years, central bank data showed earlier.
Electric vehicle battery giant CATL recorded 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 lacklustre demand, a prolonged housing downturn and employment worries, Beijing is looking to pivot its stimulus toward consumption.
At a cabinet plenary session earlier this month, Premier Li Qiang vowed to boost the economy with a focus on consumption.
State-owned firms booked a 1% rise in profits in the first seven months, foreign firms posted a 9.9% gain, while private-sector companies saw profits up 7.3%, NBS data showed.
Industrial profit numbers cover firms with annual revenue of at least 20 million yuan ($2.80 million) from their main operations.
($1 = 7.1395 )