Southern China Electronics Exporters See Orders Rise but Profits Stay Squeezed as July Politburo Meeting Nears
Updated
Updated · South China Morning Post · Jul 12
Southern China Electronics Exporters See Orders Rise but Profits Stay Squeezed as July Politburo Meeting Nears
1 articles · Updated · South China Morning Post · Jul 12
Summary
Southern China electronics exporters said a recent pickup in orders still has not lifted profits, even as June official manufacturing data showed continued expansion.
Rising raw-material costs, tougher vendor payment terms and persistent price competition are eating into margins despite solid export demand, especially from the US.
Those pressures are limiting manufacturers' ability to raise sales meaningfully and to fund new investment or hiring in one of China's key industrial regions.
July's Politburo meeting is now a focal point for factories hoping Beijing will assess the weak first-half backdrop and roll out more support.