China’s industrial profit decline slowed to 7.3% year-on-year in November, improving from October’s steeper 10% fall. This moderation signals tentative progress in Beijing’s efforts to bolster domestic demand and stabilize the economy.
Revenues of industrial firms rose 0.5% y/y in November, reversing a 0.2% y/y drop in October, according to the National Bureau of Statistics (NBS). The uptick reflects government stimulus measures, with profits from consumer goods manufacturing showing notable improvement.
However, over the first 11 months of 2024, industrial profits declined 4.7%, extending a downward trend driven by the ongoing property slump, weak consumer confidence, and global trade uncertainties.
Policymakers are responding with robust fiscal and monetary support. In 2025, China plans to issue a record $411 billion in special treasury bonds and expand its fiscal deficit to sustain economic growth. Direct financial aid to households and strengthened social security programs are also part of Beijing’s strategy to revive consumption and investment.
Despite these measures, profit pressures remain widespread. State-owned enterprises posted an 8.4% decline in profits from January to November, while foreign and private-sector firms experienced smaller drops of 0.8% and 1%, respectively.
With industrial firms at the forefront of China’s economic recovery, the pace of profit contraction will be closely monitored as a key indicator of broader economic momentum heading into 2025.