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China’s economy is troubled by industry woes
China’s economy has caught the autumn blues. Analysts have noticed that early autumn brought a worsening of problems in China’s industrial sector. According to the National Bureau of Statistics of China, profits in the country’s industrial sector plummeted by over 25% in September.
During the first month of fall, this figure dropped by 27.1% year-on-year, over a quarter down. The last time this happened was during the peak of the COVID-19 crisis when China was implementing strict lockdowns.
In the first nine months of this year, profits of China’s state-owned enterprises dropped by 6.5%, while the eight-month decline was at 1.3%. As for the private sector, it slowed down by 9.9%.
The situation is especially bleak in construction (down 51%), coal mining (down 21.9%), and equipment manufacturing (down 7.2%). At the same time, there were some bright spots. Profits rose in nonferrous metals production (up 52.5%), textiles (up 11.5%), and electrical equipment (up 7.1%).
It was previously reported that the Chinese authorities have been unable to stop the sharp fall in housing prices, which have been sliding since 2015. Notably, in the first nine months of 2024, real estate sales in China tumbled by over 17%.
Financial analysts believe that China’s 800 billion yuan (over $100 billion) in budgetary support will likely not improve the situation. Instead, these measures might only delay a crisis, rooted in deeper structural issues.
Published 05 November 2024
© InstaFintech Group
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© InstaFintech Group
