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Chinese industrial firms saw fifth straight month of higher profits in September
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BEIJING – Profits at China’s industrial firms rose for a fifth straight month in September, but at a slower pace as factory-gate deflation and rising raw materials costs undercut a recovery in the manufacturing sector.
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China’s economic rebound has been gaining momentum following the sharp COVID-19-driven downturn thanks to strong exports, pent-up demand and government stimulus, but slower-than-expected third quarter gross domestic product growth highlighted pockets of weakness for one of the few drivers of global demand.
Profits at Chinese industrial firms in September rose 10.1% year-on-year to 646.43 billion yuan ($96.34 billion), National Bureau of Statistics (NBS) data showed on Tuesday.
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That marked the fifth month of profit growth albeit slower than a 19.1% increase in August.
Zhu Hong, a senior statistician at the NBS, attributed the slower growth in September to deepening declines in factory-gate prices, rising losses from asset depreciation and increasing raw material costs for auto and electronics sectors.