26.11.201723:57:00UTC+00China Industrial Profit Maintains Momentum Amid Price Increases

Chinese industrial profits managed to retain their recent momentum, underlying resilience in the economy and strength in the country's producer inflation.

In October, industrial profits jumped 25.1 percent from a year prior period to 745.4 billion yuan, declining from a 27.7 percent increase in September, according to a report by the National Bureau of Statistics.

Despite the slight slowdown, the monthly growth rate was still the second-fastest rate for a single month this year. The data includes large firms with annual revenue topping 20 million yuan from their main businesses.

Over 50 percent of the gain in profits in October originated from mining, iron and steel smelting and processing chemicals and oil and natural gas extraction, according to the statistics bureau in a statement released with the report. The lower cost aided in lifting profits, as operating margins rose year-on-year to 6.24 percent.

China's industrial sector has been driven by a government led construction boom, which helped bolster demand and prices for building materials, particularly during the first half of the year. However, factory activity has been tempered in the last few months as the government launched a crackdown on financial crisis.