The profit growth of the Chinese industrial companies slowed for the fifth consecutive month amid a continuing trade war between Washington and Beijing, as well as the weakening domestic economy. In September, the industrial earnings grew by 4.1% yoy, while in August the increase was 9.2%. The total earnings in the past month is 545.5 billion CNY (78.6 billion USD), according to the National Statistics Bureau.
Among the factors behind the trend is the slowdown in industrial output growth in the Asian country in September. The earnings in the first nine months of this year rose by 14.7% over the same period of the previous year to 4.97 trillion CNY.
“During this 9-month period, 34 out of 41 industrial sectors report profit growth on an annual basis”, said the Chinese Bureau of Statistics.
The escalating trade war between the US and China may create threats to business investment in the world’s second-largest economy, and the slowdown in profit growth may continue in the coming months.