China's industrial profits post faster gains in June despite faltering economy

BEIJING, July 29 (Reuters): China's industrial profits grew at a faster clip in June, official data showed on Saturday, even as businesses were grappling with a downshift in consumers' sentiment amid a shaky economic recovery.
A 3.6 per cent year-on-year rise in profits last month followed a 0.7 per cent gain in May, while first-half earnings were up 3.5 per cent, accelerating from a 3.4 per cent increase in the January-May period, National Bureau of Statistics (NBS) data showed.
"Relatively rapid industrial production growth, coupled with a significantly easing in factory-gate price declines since the second quarter, have promoted a stable recovery of corporate revenue," NBS statistician Wei Ning said in a separate statement.
"Meanwhile, we should also see that insufficient domestic effective demand has constrained the continuous improvement of corporate performance, and the severe and complex international environment has increased the operating pressure of enterprises."
The robust data contrasted with a slowing economy, which missed forecasts in the second quarter as the consumer sector was downbeat amid job market woes and a protracted housing downturn.