BEIJING (Reuters) – Profits at China’s industrial firms in June rose 11.5% year-on-year to 666.55 billion yuan ($95.27 billion), the statistics bureau said on Monday, adding to signs the country’s economic recovery is gaining momentum.
The rebound followed a 6.0% gain in May, which marked the sector’s first monthly profit growth since November before the onset of the coronavirus crisis.
For January-June, industrial firms’ profits fell 12.8% from the same period a year earlier to 2.51 trillion yuan, better than a 19.3% slump in the first five months.
Liabilities at industrial firms rose 6.4% on an annual basis at end-June, versus 6.6% growth as of end-May.
After a record slump early in the year, China’s economy rebounded more than expected in the second quarter as virus lockdown measures ended and policymakers ramped up stimulus. But analysts warn the rebound is heavily reliant on state-led investment, while domestic and global demand remain weak.[ECILT/CN]
(Reporting by Gabriel Crossley and Roxanne Liu; Editnig by Kim Coghill)
