China’s July Industrial Profits Swing to Growth but Outlook Clouded

An employee works on the production line of a tire factory under Tianjin Wanda Tire Group, which exports its products to countries such as U.S. and Japan, in Xingtai, Hebei Province, China on May 21, 2019. Jason Lee/Reuters

BEIJING—Profits at China’s industrial firms returned to growth in July, helped by public works spending and improved margins in the petrochemical and auto sectors, but an economic slowdown and the U.S. trade war are expected to weigh on the business outlook.

Industrial profits rose 2.6 percent in July year-on-year to 512.7 billion yuan ($72.28 billion), according to data released by the National Bureau of Statistics (NBS) on Aug. 27, swinging from a 3.1 percent decline in June.