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MNI BRIEF: China April Industrial Profits Slump On Covid Curbs

MNI (Singapore)

Profits at China's industrial firms fell by 8.5% y/y in April, significantly reversing a double-digit gain as Covid-19 outbreaks disrupted factory activity and squeezed margins, data released by the National Bureau of Statistics on Friday showed.

Industrial profits slowed to 3.5% y/y in the first four months, the NBS said. The NBS did not release the March monthly reading, but analysts from GF Securities estimate it grew about 14%. Covid-hit eastern and northeastern regions saw profits decline by 16.7% and 8.1%, respectively, in the first four months. Auto-making, a major sector there, dragged down manufacturing profits by 6.7 percentage points in April, according to the NBS.

High commodity prices drove up profits at some upstream industries, including mining and nonferrous metal smelting, the NBS said.

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