Profits at industrial firms in China declined in October, the National Bureau of Statistics said on Thursday, as manufacturers navigated renewed uncertainty in trade relations with the U.S. and Beijing’s campaign to rein in excess capacity.
Industrial profits dropped 5.5% from a year earlier in October, the biggest decline since June, and reversed the momentum seen in September, when the figure surged 21.6%, the most significant jump since November 2023.
For the first ten months of the year, profits at major industrial firms grew 1.9% from a year ago, the official data showed, decelerating from a 3.2% rise in the January to September period.
Trade tensions between China and the U.S. had escalated that month over export controls, with U.S. President Donald Trump threatening additional 100% tariffs on imports from China, before the two economic superpowers reached a deal in South Korea.
China’s manufacturing activity contracted more than expected in October, with the official manufacturing purchasing managers’ index slumping to a six-month low of 49.0. A reading above the 50 benchmark indicates growth, while one below that suggests contraction.
