[Beijing 27th Reuters]-China's National Bureau of Statistics announced that industrial profits in August were 517.8 billion yuan ($ 72,590 million), down 2.0% from the same month last year.
The company's business performance has been stressed by the continuing sluggish domestic demand and the trade war with the United States. July was up 2.6%.
Corporate profits in the industrial sector have been stagnant since the second half of 2018, except for a temporary recovery.
The Producer Price Index (PPI), which is an important indicator for grasping domestic demand and corporate profitability, recorded the first significant decline in three years in August.
January-August industrial profit was 1.7 trillion yuan, a 1.7% decrease from the same period last year. January-July was down 1.7%.
According to a statement by the National Bureau of Statistics, the decline in profits in August is mainly due to sluggish sales and lower producer prices.
Industrial production in August is the lowest growth in 17 and a half years. Exports are also declining sharply due to trade wars and sluggish domestic demand.
As of the end of August, the industrial sector's debt was 65,810.0 billion yuan, up 5.0% year-on-year. July was up 4.9%.
Private-sector profits for the first eight months increased 6.5%. The growth slowed from 7.0% in January-July.