- March profit rose 11.1% from year earlier to 561 billion yuan
- NBS: Acceleration due to sales, prices, cost cuts, investments
Profits of China’s industrial corporations jumped the most since July 2014, adding to evidence of continued stabilization in manufacturing.
Industrial profits rose 11.1 percent in March from a year earlier to 561.2 billion yuan ($86.5 billion) in March, compared with a 4.8 percent rise in the first two months of the year, the National Bureau of Statistics said Wednesday. That acceleration is mainly due to growth in sales, higher prices, cost cuts and gains from investments, the NBS said in a statement.
The fresh signs of stabilization in the world’s second-largest economy may allow the government to dial back aggressive fiscal and monetary stimulus as property markets and factories rebound. Other March data showed new credit, industrial output, fixed-asset investment and retail sales picked up in March and beat analysts’ estimates.
The statistics bureau also warned that stronger growth may not persist. "Weak demand, pressure from inventory and funding difficulties still affect the steady development of the industries," the NBS said in the statement. "Whether rising profits can be sustainable or steady still needs to be seen."
— With assistance by Xiaoqing Pi