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China’s industrial firms saw overall profits decline further in the January-October period as COVID-19 outbreaks flared up and cities imposed new virus curbs, including targeted lockdowns, dampening economic activity.

Workers work at a construction site, following the coronavirus disease outbreak, in Shanghai, China, October 10, 2022.Workers work at a construction site, following the coronavirus disease outbreak, in Shanghai, China, October 10, 2022.COVID-19 outbreaks flared upIndustrial profits fell 3.0% in the first 10 months of 2022 from a year earlier. That compares with a 2.3% drop for January-September, National Bureau of Statistics data released on Sunday showed.

Profits for manufacturers were down 13.4% in the first ten months, slightly lower than the 13.2% fall in January-September. Some analysts now believe China’s GDP could contract in the current quarter from the third quarter, and have cut their 2023 forecasts, predicting the path to reopening the economy will be slow and bumpy.

To prop up the faltering economy, authorities have rolled out a flurry of measures recently, including moves to ease some COVID curbs and provide financial support to the property market, which have underpinned market sentiment.

 

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