BEIJING, Sept 27 Reuters Profits at China39;s industrial firms extended a doubledigit drop for the first eight months, but the pace of declines eased slightly as a flurry of policy support steps has started to stabilise parts of the stuttering economy.

The 11.7 yearonyear fall in profits narrowed from a 15.5 contraction for the first seven months, in line with expectations and potentially suggests a modest recovery is beginning to take root for some businesses.

That was backed up by August earnings posting a surprise surge of 17.2 from a year earlier, data from the National Bureau of Statistics NBS showed on Wednesday. Profits were down 6.7 in July.

This data reflected that domestic demand has stabilised and the demand and supply side has seen balanced recovery, said Bruce Pang, chief economist at Jones Lang Lasalle.

NBS statistician Yu Weining said in an accompanying statement that a series of policies to promote macroeconomic recovery last month39;s underpinned earnings.

Profits improved for 30 of 41 major industrial sectors during the period, with the losses in raw material manufacturing industry narrowing significantly on rising commodity prices and recovered demand. NBS didn39;t provide comparative data for JanuaryJuly.

As Beijing steps up policy support for its faltering economy after a brief postCOVID recovery, recent data have shown signs of stabilisation with strongerthanexpected bank lending, industrial output and retail sales growth for August.

Still,…