China’s industry profits stumble: Profits in November fall 13.1%; biggest decline in over a year

China’s industrial firms saw their profits drop by 13.1 per cent in November, from last year, marking the steepest decline in over a year. This fall came despite strong exports, putting focus on country’s ongoing economic struggles and increasing pressure for more government support. The National Bureau of Statistics released these figures on Saturday, as quoted by Reuters.The decline was worse than October’s 5.5 per cent. This trend comes as China faces persistent factory-gate deflation and weak consumer spending. For the first 11 months of the year, industrial profits barely grew, showing just a 0.1% increase compared to the previous year’s 1.9% growth.“The profit numbers show a broader cooling in economic activity in the fourth quarter, mainly due to the drag from soft domestic demand,” said Xu Tianchen, senior economist at the Economist Intelligence Unit. However, Xu remained cautiously optimistic about future profits, suggesting companies might find more opportunities overseas.Despite this, there were some industries that managed to register gains. The automobile industry posted a 7.5 per cent rise in profitability, while the high tech industry posted a 10 per cent rise. A massive decline of 47.3 percent in profitability was seen in the coal mine industry.An estimate by the think tank, Rhodium Group, quoted by Reuters, indicated a growth of 2.5 per cent to 3 per cent in the Chinese economy for the year, which is approximately half the officially-hinted growth.Chinese policymakers are now promising more support. At a recent meeting, they pledged to maintain “proactive” fiscal policies next year. The government has also committed to improving employment, boosting consumption, stabilizing prices, and helping the struggling property market.NBS Chief Statistician Yu Weining noted that industrial firms still need stronger support, especially given the uncertain global environment and ongoing changes in growth drivers. The data covers companies earning at least 20 million yuan ($2.85 million) in annual revenue from their main operations.