China Industrial Profits Drop Persists Amid Deflation Risks

  • June dip eases to 8.3% as falls at private, foreign firms slow
  • Margins still pressured by deflation, waning consumer spending
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China’s industrial profits dropped at a slower pace in June, though worsening factory-gate deflation and slowing consumer spending continued to squeeze business’s margins.

Profits last month slid 8.3% from a year earlier, compared with a decrease of 12.6% in May, data published by the National Bureau of Statistics showed Thursday. For the first half of 2023, profits fell 16.8%, easing from the 18.8% drop in the first five months.