China industrial profits tumble 18% in April as demand sputters

China’s industrial firms saw an overall 20.6% drop in profits from January to April compared to the same period last year, according to data from the National Bureau of Statistics. The fall was due to margin pressures and soft demand amid the country’s faltering economic recovery. The grim profit readings come after April economic indicators, including industrial output, retail sales and property investment, suggested China’s recovery is slowing down. Foreign firms’ profits slid 16.2% and private-sector firms’ profits plunged 22.5% in January-April. In response, China’s government will focus on restoring and expanding demand, NBS statistician Sun Xiao said.