China’s Industrial Profits Grow at Slower Pace as Costs Rise

  • Increased prices boost raw material producers, squeeze others
  • Smaller companies recovering more slowly from pandemic
WATCH: China’s industrial profit growth slowed as many businesses faced rising costs. (Source: Bloomberg)
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China’s industrial profit growth slowed in May as the base effects from revenues savaged a year ago by the coronavirus pandemic eased, and many businesses faced rising costs.

Industrial profits rose 36.4% in May from a year earlier, the National Bureau of Statistics said Sunday, compared with a 57% increase in the previous month. For the first five months of the year, profits climbed 83.4% from a year earlier.