Profit Growth of China's Industrial Firms at 7-month Low in October

Forex News

Profits of China's major industrial firms fell for a sixth straight month in October, as factory prices and the pace of sales increases softened. The slowdown was also caused by cooling factory-gate inflation and a high-base effect.

The National Bureau of Statistics (NBS) reported, that industrial profits rose 3.6% in October from a year earlier to 548 billion yuan ($78.92 billion), slowing from September's 4.1% gain. The October’s indicator was the lowest in 7 months. By the end of October, the debt-asset ratios of major industrial firms dropped 0.5% from a year earlier to 56.7%.

The report also showed, that for the first 10 months, profits for China's industrial firms rose 13.6% from a year earlier, versus a 14.7% increase in January-September. Meanwhile, industrial firms' revenue growth slowed to 9.4% in the first 10 months from 9.6% gain in January-September.

Yesterday, US President Donald Trump threatened to increase tariffs on $200 billion of Chinese goods. Trump said he would impose duties on all remaining imports from China if talks with Xi Jinping later this week fail to produce a trade deal. The two leaders are set to meet at the G-20 meeting in Argentina on November 30.