On Sunday, data released from the China’s Bureau of Statistics had shown signs of economic recovery following months of pandemic-led drawdowns, as China’s industrial firms’ profits had registered gains for the first time in six months on May, pointing towards an upscaled momentum towards recovery for the Chinese economy.
Besides, although China’s Bureau of Statistics Sunday’s report had whacked away the glooms caused by chatters of a pandemic resurgence and had lit up a beacon of hope for manufacturing investment and jobs in China, several industry analysts had expressed scepticism over an uneven recovery in Chinese economy given the extent of plunge in the world’s second-largest economy’s services sectors during the peak of the pandemic outbreak.
However, latest upbeat data from China’s National Bureau of Statistics came forth days after the Baltic freight index had logged a record climb due to an intransigent iron ore demand from China, while concerns over a quicker-than-anticipated recovery had bolstered last week after top health officials in China were quoted saying that the country had successfully contained another outbreak in Beijing, though an uptick in cases in Northern China closer to the Russian land ports appeared to have kept a lid on demands.
China’s May Industrial firms’ profit rose by 6% y/y
Meanwhile, according to the statement from the China’s National Bureau of Statistics released earlier on the day, China’s industrial firms’ profits had surged by 6 per cent in May on an annualized basis to $82.28 billion, while the sharp rebound was followed by a 4.3 per cent slump in April when the ongoing pandemic outbreak had nearly stalled the global economy.
Besides, as the Chinese economy had been witnessing a clear improvement after an ease of the forced lockdown measures last month, voicing a cautious tone over the recent growth in China’s industrial sector amid a sluggish demand in home and abroad, a senior statistician at the Statistics Bureau, Zhu Hong said in the statement, “Despite May’s earnings growth market demand remains relatively weak amid the epidemic, and sustainability of the profit recovery deserves further observation. ”