BEIJING (Reuters) – Profits at China’s industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month, as manufacturers struggled with high commodity prices, COVID-19 and shortages in some key components.

The profits increased 10.1% last month to 680.3 Billion Yuan ($105B) in comparison with July’s 16.4% growth.

In recent months, momentum in China’s second-largest economy has declined due to weakened sentiment in its massive manufacturing sector.

The sluggish pace of industrial production in August was the lowest since July 2020. Its slowdown was attributed to COVID-19-related outbreaks at home, low raw material prices, Beijing’s ongoing campaign to lower carbon emissions, and persistent shortages of parts like semiconductors.

The January-August period saw industrial firms’ profits rise 49.5% to 5.61 trillionyuan year-on-year, slowing down from the 57.3% growth in the first seven month of 2021.

Recent months have seen commodity prices remain high, hurting many downstream and medium-sized businesses.

China’s cabinet or government last week pledged to intensify policy coordination to address challenges from high commodity prices and sporadic coronavirus.

China tightened its controls on electricity usage in energy-intensive businesses over the past week, further dimming manufacturers’ prospects. It also caused widespread power cuts and limited production across China.

At the end of August, liabilities at industrial companies increased 8.4% annually, compared to 8.2% in July.

Large firms that have annual revenues exceeding 20 million Yuan are included in the industrial profit data.

($1 = 6.4662 )