China’s industrial profit grows stronger, indicates firming economic rebound
China’s industrial firms had seen an increase in profits for two consecutive months. This came as the most rapid pace ever recorded in over a year, suggesting that the country’s recuperation from the novel coronavirus pandemic is gaining momentum.
The country’s industrial profits recorded an 11.5% year-on-year increase in June, the statistics bureau said on Monday. The growth came to be the fastest record since March of 2019. Despite declining 12.8% year-on-year from January to June, the figure is still milder than the 19.3% drop in the first five months.
Backed by lockdown easing and larger stimulus, China’s economy managed to advance above expectations after a record slump seen earlier this year. However, analysts warn that the recovery heavily depends on state-led investment.