Profit growth among Chinese industrial firms picked up in November in a sign that the recovery of the domestic economy is taking hold after a long-bout of slow growth.
Total industrial profits increased 22.8 percent year-on-year in November, the National Bureau of Statistics said Thursday. This was faster than the 20.5 percent gain reported in October.
The government announced a slew of stimulus measures to boost investment and infrastructure spending after growth in the world's second largest economy slowed for a seventh consecutive quarter during July-September.
In the September quarter, the gross domestic product grew 7.4 percent, the slowest pace in three years. This was a tad below the government's full-year growth target of 7.5 percent.
Earlier this month, the World Bank said fiscal stimulus and faster implementation of large investment projects will likely boost China's GDP growth to 8.4 percent in 2013. This was higher than the bank's previous forecast of 8.1 percent.
China's growth is projected to slow to 7.9 percent this year after 9.3 percent expansion in 2011. This is the lowest growth rate since 1999.
Industrial companies profit in the first 11 months of the year was 3 percent higher than a year ago, compared to 0.5 percent growth in the first 10 months, the statistical office said.
In the January-November period, companies' sales jumped 10.8 percent from the same period last year to CNY 82.3 trillion.
Out of the 41 industrial sectors monitored by the statistical office, 30 industries reported year-on-year growth in profits. Profits fell in 10 industrial categories.
by RTT Staff Writer
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