July industrial profits 4.1 yy vs 3.6 yy in June
JanJuly profits 3.6 yy vs 3.5 yy in H1
Hightech manufacturing profits 12.8 in JanJuly

BEIJING, Aug 27 Reuters China39;s industrial profits grew faster in July buoyed by hightech manufacturing, even as sluggish domestic demand weighed on the recovery in the world39;s secondlargest economy.

Profits in July jumped 4.1 from a year earlier following a 3.6 rise in June, National Bureau of Statistics NBS data showed on Tuesday.

For the JanuaryJuly period, profits expanded slightly faster at 3.6 compared with 3.5 in the first half, offering some hope of improving momentum amid dreary factory output, export, prices and banking lending numbers earlier in August.

The mild expansion in industrial profits showed that domestic macro policies are taking effect as the factory sector is undergoing a transition and upgrade, said Zhou Maohua, a macroeconomic researcher at China Everbright Bank.

The hightech manufacturing sector, including the making of lithiumion batteries and semiconductors and related equipment, led the earnings growth with a 12.8 rise in the JanuaryJuly period, the data showed.

Still, domestic consumption demand remains weak while the external environment is complex and volatile, said NBS statistician Wei Ning, suggesting more efforts were needed to boost domestic demand.

Tamer shipments last month raised a red flag over the country39;s exportdriven recovery and heightened concerns about frail domestic demand….