BEIJING: Profits at Chinese industrial enterprises continued to contract as the economy slows and factory deflation deepens.
Industrial profits dropped 5.3% in September, according to the National Bureau of Statistics on Sunday.
While industrial production picked up in September, growing deflationary pressure continued to weigh on corporate profits and their debt servicing ability.
Companies’ earning power will likely remain depressed in the coming month amid weak demand.
“The larger slide in September was due to a faster decline in industrial product prices and a slower growth in sales,” the bureau said in a statement released with the data.