China Industrial Profit Growth Eases as Deflation Persists

  • Profits rise 2.7% y/y in October, slower than September’s gain
  • Other data for last month mixed as recovery remains fragile
WATCH: Dong Chen, Head of Asia Macroeconomic Research at Pictet Wealth Management, reacts to China’s industrial profits.Source: Bloomberg
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Profits at China’s industrial companies rose at a much slower pace in October than the prior month as deflationary pressures persisted, suggesting the economic recovery remains fragile in the final stretch of 2023.

Industrial profits increased 2.7% from a year ago, according to data published by the National Bureau of Statistics on Monday. The pace eased significantly from September’s 11.9% gain and August’s 17.2% jump.