Profits from industrial companies in China increased in July. This is according to figures released by the Chinese National Statistical Office.

Industrial profits increased by 2.6 percent on an annual basis, after falling by 3.1 percent a month earlier. According to experts, growth is primarily a reflection of favorable effects last month compared to the same period a year earlier. Underlying industrial production is declining and Chinese domestic demand is likely to continue to weigh on profits.

The sizeable industry in China is also under pressure from a slower global demand for Chinese-made products and is struggling with import duties imposed by US President Donald Trump.