China July Industrial Profits Down as COVID-19 Curbs, Heat Waves Hit

A worker works on a production line manufacturing bicycle steel rim at a factory in Hangzhou, Zhejiang province, China, on March 2, 2020. China Daily via Reuters

SHANGHAI—Profits at China’s industrial firms sank in July as fresh COVID-19 curbs dragged down demand and squeezed factory margins, while power shortages due to heat waves threatened production.

Profits at China’s industrial firms fell 1.1 percent in January-July from a year earlier, wiping out the 1.0 percent growth logged during the first six months, the National Bureau of Statistics said on Saturday.