Chinese industrial profits fall in August
Chinese industrial profits fell 8.8% in August compared to a year ago following a 2.9% drop in July, adding to concerns about the nation’s economic slowdown.
The National Bureau of Statistics said exporters experienced foreign exchange losses due to the yuan’s depreciation in August. The agency added that volatile domestic demand dented profits.
Higher costs and a profit decline in the automobile, petroleum and chemical sectors also weighed on results.
“This adds to questioning over the health of the slowing nation and how the transition to consumption led growth from infrastructure-led is beginning to bite as well as how it may affect US rate-rise timing,” said Michael van Dulken, head of research at Accendo Markets.