Industrial profit growth slowed in December
Total profit of China’s large industrial companies increased at the slowest pace in nine months in December.
It rose 6 percent to ($155.8 billion, compared with 9.7 percent growth in November, the National Bureau of Statistics said.
Economists said that recent economic indicators have confirmed the trend of softening growth momentum that began in the fourth quarter.
For the full year, industrial profit was up 12.2 percent. The 2012 growth rate was only 5.27 percent.
Large companies are defined as those with annual revenues of more than 20 million yuan.
Industrial output grew 9.7 percent year-on-year in December, held down by weaker infrastructure investment, which in turn was attributed to the slower pace of credit growth.
The preliminary January reading for HSBC Holdings Plc’s manufacturing purchasing managers’ index fell to 49.6, the bank reported last week, from 50.5 in December.
The January figure was the first decline below the level of 50, which distinguishes expansion from contraction, since August.