China’s industrial enterprises saw their earnings drop for the first time in three months, adding to evidence that the world’s second-largest economy is losing steam.
Industrial profits fell 5.5% last month from a year earlier, according to data released by the National Bureau of Statistics, after increases of more than 20% in each of the previous two months. Bloomberg Economics had expected a gain of 2.8% in October.
For the first 10 months of the year, profits climbed 1.9%. Manufacturers and utilities continued to see fast growth while miners struggled to stem double-digit declines in earnings.
The surprise deterioration shows how a cooling economy is hurting companies’ bottom line, a worry because that risks adding downward pressure on investment and employment.