BEIJING (Reuters) -China's industrial profits fell for a third consecutive month in July, as businesses struggled in the face of subdued demand and persistent factory-gate deflation despite policy measures to help shore up the economic recovery.
Exports beat expectations last month but a slew of underwhelming indicators have kept pressure on Beijing to roll out more stimulus.
The government has introduced measures to bolster domestic consumption and curb price wars, but these efforts have yet to produce
significant results amid ongoing deflationary pressures and a prolonged housing downturn.
Profits at China's industrial firms fell 1.5% in July from a year earlier, following a 4.3% slump in June, while a 1.8% profit drop in the first half eased slightly to a 1.7% slide in the January-July period, National Bureau of Statistics (NBS) data showed on Wednesday.
Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing, though weak business and consumer confidence has dragged on demand and the broader economy. China's July bank loans unexpectedly contracted for the first time in 20 years.
State-owned firms reported a 7.5% fall in profits in the first seven months. Private-sector firms saw profits increase 1.8% while foreign firms recorded a 1.8% rise, the data showed.
Industrial profit figures cover firms with annual revenue of at least 20 million yuan ($2.80 million) from their main operations.
($1 = 7.1551 Chinese yuan)
(Reporting by Qiaoyi Li and Ryan Woo; Editing by Jacqueline Wong)
