Industrial profit rises at slower pace in May

(Photo/Shanghai Daily)

China's industrial profit expanded 8.9 percent from a year earlier in May, slowing from 9.6 percent a month ago, the National Bureau of Statistics said on Friday.

Profit totaled 512.7 billion yuan (US$83.3 billion) last month as manufacturers recorded a combined 2.27 trillion yuan in revenue during the first five months, up 9.8 percent year on year.

Bureau researcher He Ping said the moderation in profit growth was mainly due to weaker performances among coal explorers and machinery makers.

"Overall, China's manufacturing sector is stabilizing as the economy is stabilizing," He said.

According to the bureau, profit among coal explorers dropped 50.6 percent in May, deteriorating further from a 44.8 percent fall in April as the country moves towards using cleaner energies like natural gas. Profit among machinery makers increased 5.1 percent last month, 8.7 percentage points slower than in April.

The HSBC Flash China Manufacturing Purchasing Managers' Index, the earliest available indicator of China's industrial sector, rose to a seven-month high of 50.8 in June, according to Markit, HSBCs' research firm.