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(Reuters) -
Profits for Chinese industrial companies grew at a much slower pace in November, the statistics bureau reported on Monday, pressured by falling prices of some raw materials, the faltering housing market and the slowdown. consumer demand.
Profits rose 9% year-on-year in November to 805.96 billion yuan (US $ 126.54 billion), well below the 24.6% increase recorded in October.
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In the January-November period, the profits of industrial companies increased by 38% year-on-year, to 7.98 trillion yuan, which is a slower increase than the 42.2% of the first 10 months of 2021, according to the statistical office.
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Zhu Hong, a senior statistician at the National Bureau of Statistics of China (NBS), said that while the state's efforts to cool wholesale prices in November removed cost pressures from industries in the Late in the value chain, the brakes meant that the contribution of the mining and raw materials sectors to overall earnings growth weakened.
"But companies continue to face great cost pressures, and the downstream sector earnings improvement must continue to consolidate," Zhu said in a statement accompanying the release of the data.
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China's red-hot factory inflation eased slightly in November, fueled by a government crackdown on skyrocketing raw material prices and declining energy shortages, as Beijing struggled to reduce the effects. economic costs of increased costs.
The world's second-largest economy, which has lost steam after a strong recovery from last year's pandemic, faces multiple challenges as the housing crisis deepens, supply chain bottlenecks and tight restrictions persist. health services due to covid-19 affect consumer spending.
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The country's real estate crisis has also affected the steel sector, while the production of cement, glass and household appliances remains vulnerable to falling demand.
At a key agenda meeting this month, China's top leaders pledged to stabilize the economy and keep growth within a reasonable range in 2022.
The People's Bank of China this month cut the amount of cash banks must keep in reserve and lowered the one-year benchmark interest rate to stimulate growth.
The industrial profit data covers large companies with annual revenues of more than 20 million yuan in their main operations.
