China Continues to Slow Down...Industrial profit growth rate in December is 20 months, the lowest

China's industrial profit growth plunged in December last year, the lowest in 20 months since April 2020.

China's National Bureau of Statistics said on the 27th that China's industrial profit in December last year rose 4.2 percent from the same month last year to 734.2 billion yuan (about 139.1529 trillion won). Bloomberg initially predicted the same level as November, but it fell far short of the previous month's (9.0 percent). Industrial profit growth, which has been declining since early last year, has rebounded since August (10.1 percent), but has decreased sharply since October (24.6 percent).

In the January-December period of last year, corporate profits in the cumulative industrial sector increased 34.3% year-on-year. Based on 2019 before COVID-19, the average growth rate in 2020 and 2021 is 18.2%. The National Statistical Office said, "In 2021, profits of industrial companies grew significantly and efficiency steadily increased."

The problem is that it shrank sharply in the second half of the year. Compared to the previous year, the quarterly industrial profit growth rate fell to △ 137.3% in the first quarter △ 36.3% in the second quarter △ 14.3% in the third quarter △ 12.3% in the fourth quarter.

Joo Hong, a senior researcher at the National Statistical Office, said, "The management pressure of sub-industry, especially small companies, is still high," adding, "The size of the deficit is growing rapidly compared to the same period last year and industrial companies continue to improve profitability." In order to increase industrial profits this year, the party's central government and the State Council should increase the core competitiveness of the manufacturing industry through policy support and ensure that there are no difficulties for companies due to tax cuts, he stressed.

Industrial profits are an indicator of the profitability trend of companies in industrial fields such as manufacturing. The National Bureau of Statistics calculates and publishes monthly indicators for companies with annual sales of more than 20 million yuan.

Date: 2022-01-08

Reporter: 신정훈