BEIJING: China’s industrial profits grew 24.7% in April from a year earlier, the fastest pace since November 2023. The figure accelerated from a 15.8% rise in March, according to data from Wind Information.
In the first four months of the year, industrial profits rose 18.2%, up from 15.5% growth in the first quarter.
The computer and electronics equipment manufacturing sector, the largest by profit, saw earnings more than double from a year ago, though the pace slowed slightly in April from March on a year-to-date basis.
Among the 10 largest sectors by profit, oil and gas extraction posted an 8.1% increase in profits in the January-April period, reversing a 1.4% decline in the first quarter. Higher crude prices helped lift profits in petroleum processing to 40.42 billion yuan ($5.96 billion) in the first four months, nearly double the 22.94 billion yuan recorded through March.
Auto manufacturers saw profits fall 16.8% in the same period, an improvement from a 17.8% decline in the first quarter.
China’s efforts to address excessive competition in the auto and other sectors are beginning to bear fruit, Jens Eskelund, president of the European Union Chamber of Commerce in China, told reporters Tuesday, citing a survey of members earlier this year. But he cautioned that it would take another year or two to confirm the trend.
A fivefold increase in profits in mining and related sectors also boosted overall industrial profit growth. Iron smelting and rolling swung to a profit for the year as of April, compared with a loss in the first quarter.
However, profit declines in furniture manufacturing deepened to 54.4% for the first four months, worse than the 44.9% drop recorded through March.
China reported slower economic growth in April, with industrial output rising 4.1% and retail sales increasing 0.2% from a year earlier. Fixed asset investment fell in the first four months as the real estate drag intensified.
Exports remained strong, climbing 14.1% in April from a year ago in U.S. dollar terms. Imports surged 25.3%, according to data released earlier in May.
The producer price index jumped 2.8% in April from a year earlier, the most since July 2022.
