The profit of Chinese industrial companies showed a double-digit decline (-18.8%) in the first 5 months of 2023.
This was reported by the national statistical office, indicating that the numbers, although clearly negative, show a slight improvement from -20.6% in January, February, March, and April, while the decline in 2022 was 4%.
The economic depression is related to shrinking margins due to the weakened demand and a post-pandemic recovery that has not yet begun. Meanwhile, the unemployment rate among the youth reached a new high of 20.8%.
Earnings fell in 24 of the 41 major industries over this period, with the bottom of the ranks occupied by oil, coal, and fuel processing sectors that fell 92.8%.