China’s industrial profits were growing at a slower pace but a decline ups the risk factor. In November, profits declined by 1.8% over a year ago, the first decline since December 2015.
Reasons were slowing sales, depressed prices and rising costs. A bruising trade war with the US has coincided with a premeditated slowing of China’s economy.
If the profit decline takes root, China’s domestic demand could suffer and its industry could postpone investment plans. That’s bad news for the global economy.
It could keep up the pressure on commodity prices in 2019, a sobering prospect for India’s metals’ sector.