BEIJING (Reuters) – China’s industrial profits plunged in September, extending their declines with the year’s steepest monthly fall, official data showed on Sunday, as policymakers ramp up stimulus to revitalise economic growth.

Profits fell 27.1% in September from a year earlier, following a 17.8% fall in August, while earnings fell 3.5% in the first nine months versus a 0.5% rise in the January-August period, according to the National Bureau of Statistics (NBS).

China’s economy grew at the slowest pace since early 2023 in the third quarter, with the crisis-hit property sector showing few signs of steadying as Beijing races to revitalise growth.

Recent data also pointed to increased deflationary pressures, softer export growth and subdued loan demand, raising red flags over the economic recovery and strengthening the case for fiscal stimulus to galvanise growth.

Highlighting the business impact of price cuts and weak demand, profit at China’s auto industry tumbled 21.4% year-on-year to 30.5 billion yuan in August, data from the China Passenger Car Association showed.

China’s finance minister has vowed more fiscal stimulus to revive the faltering economy, without giving a dollar figure for the package, following the central bank’s announcement late last month of the most aggressive monetary support measures since the pandemic.

State-owned firms recorded a 6.5% drop in profits in January-September, foreign firms saw earnings up 1.5%, while private-sector companies netted a 0.6% decline, per a breakdown of NBS data.

Industrial profit numbers cover firms with annual revenues of at least 20 million yuan ($2.8 million) from their main operations.

($1 = 7.0746 Chinese yuan renminbi)