Profits of China’s major industrial companies fell 8.8 per cent year-on-year in August, down sharply from July’s 2.9-per-cent decline, statistics authorities said Monday.
Profits at Chinese industrial firms with annual revenues of more than 20 million yuan (3.1 million dollars) totaled 448 billion yuan in August, Xinhua news agency cited the National Bureau of Statistics as saying.
The results followed a flash survey released last week that indicated sentiment in China’s manufacturing sector reached a 78-month low in September.
Published on a monthly basis ahead of the final data, the flash manufacturing purchasing manager’s index from Caixin Insight Group dropped from 47.3 in August to 47.0 in September.
A figure above 50 generally means a positive outlook as measured by managers’ purchasing intentions, while below 50 is taken as a negative reading.
Analysts say China may struggle to meet its growth target for 2015 of about 7 per cent amid sluggish investment growth and falling exports.