BEIJING, Nov 27 Reuters Profits at China39;s industrial firms extended gains for a third month in October, albeit at a slower pace, suggesting more policy support from Beijing is needed to help shore up growth in the world39;s secondlargest economy.

The 2.7 yearonyear rise sees profit growth narrow back to singledigits, following an 11.9 increase in September and a 17.2 gain in August, putting pressure on authorities to extend further assistance to manufacturers as soft global demand continues to dog policymakers heading into 2024.

For the first 10 months of 2023, profits slid 7.8 from a year earlier, narrowing from a 9 decline in the first nine months, data from the National Bureau of Statistics NBS showed on Monday.

China39;s economy has struggled to mount a strong postCOVID recovery as distress in the housing market, local government debt risks, slow global growth and geopolitical tensions dented momentum.

A flurry of policy support measures has had only modest effect, raising pressure on authorities to roll out more stimulus.

Three consecutive months of positive profit growth suggest that the worst times, when profitability was squeezed by high input costs, overcapacity and soft demand, are over, said Xu Tianchen, senior economist at the Economist Intelligence Unit EIU.

However, the volatility of profits is a sign enterprises remain highly sensitive to input costs, he added. The sharp slowdown of yearonyear profit growth was partly driven by a rebound in energy…