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China's industrial enterprises' profit declines 12.6% in May 2023: NBS

29 Jun '23

1 min read

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Chinese industrial firms witnessed a 12.6 per cent YoY profit drop in May 2023, improving from April's 18.2 per cent slump, per NBS data.
A recovery trend is apparent with supportive policies helping the manufacturing sector.
The first five months saw an 18.8 per cent YoY profit decrease, a slight improvement from the January-April period.

Chinese industrial businesses that generate an annual primary business income of at least 20 million yuan (equivalent to approximately $2.77 million) witnessed their collective profits register at 635.81 billion yuan in May 2023, a 12.6 per cent fall from the previous year. However, this decline was lesser than the 18.2 per cent slump observed in April, according to the latest data by China's National Bureau of Statistics (NBS) on Wednesday.

The manufacturing sector, in particular, saw a notable improvement in May due to a series of supportive policies introduced by the government. The rate of profit decline in this sector was 7.4 percentage points less than that of April, showcasing signs of a potential turnaround.

In a broader context, the profits of Chinese industrial firms suffered a year-on-year dip of 18.8 per cent during the first five months of the year. However, this is a 1.8 percentage point improvement compared to the decrease observed from January to April. The total revenue for these firms displayed a marginal increase of 0.1 per cent.

Fibre2Fashion News Desk (DP)

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