BEIJING (Reuters – China’s industries saw a higher profit growth in October than usual, according to statistics bureau. The result is a relief for an economically weakening country, which has seen soaring raw materials prices.

The official data revealed that October profits rose by 24.6% compared to a year ago, reaching 818.7 billion Yuan ($128.1 Billion), an increase from the 16.3% reported in September.

Industrial firms saw a 42.2% increase in profits between January and October, to 7.2 trillion Yuan. This is slower than the 44.7% growth seen over the first nine months 2021.

Industrial profit data includes large companies with an annual revenue of more than 20 million yuan.

China’s power crisis has caused prices to soar. Beijing is trying to calm a hot market for coal as the main fuel source for its power generation.

A Chinese official said that the state planner had stated last Sunday that energy prices, including coal, have dropped significantly and have driven down steel, aluminum, and PVC prices.

The second-largest global economy managed an impressive recovery after last year’s pandemic slump. However, it is now struggling with a slower manufacturing sector and debt problems in its property market.

China’s industrial output increased faster than anticipated in October, but it remained at the second-lowest level this year.

This data covers industrial profits for large businesses with revenues exceeding 20,000,000 yuan per year from their main operations.

($1 = 6.3924 )