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China industrial profits up 3.3% in 2014
January 27, 2015, 8:17 am

The growth rate was 8.9 percentage points lower than that of 2013, the National Bureau of Statistics (NBS) said [Xinhua]

The industrial growth rate was 8.9 percentage points lower than that of 2013, the National Bureau of Statistics (NBS) said [Xinhua]

Profits of Chinese industrial businesses hit 6.47 trillion yuan ($1.05 trillion) in 2014, up 3.3 per cent year on year, official data showed on Tuesday.

The growth rate was 8.9 percentage points lower than that of 2013, the National Bureau of Statistics (NBS) said.

The bureau’s calculations include companies with annual revenues exceeding 20 million yuan.

In December 2014 alone, these companies’ combined profits fell 8 per cent year on year to 850.73 billion yuan, widening from a 4.2-per cent decline in November.

The decrease highlights another sign of stress in the industrial sector after output growth slowed to a five-year low. Policymakers have eschewed broad stimulus measures to revive growth, opting for targeted easing and expedited spending.

NBS statistician He Ping attributed the profit decrease to lower prices, rising costs and significant profit declines in the oil and coal industries.

Out of 41 industry categories, 28 reported year-on-year profit increases and two remained flat. Eleven industries, including oil and natural gas, saw profits fall.

The mining industry saw a 23-per cent profit drop and raw materials registered a 1.4-per cent drop, while the consumer goods industry reported year-on-year profit growth of 5 percent.

“This means that China’s economic growth is shifting from investment-driven to consumer-led growth,” said He.

 

Source: Agencies

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