BEIJING (Reuters) -China’s industrial profits returned to growth in August even as businesses braced for a broader economic slowdown amid persistent demand woes.

A government crackdown on cost competition helped ease producer deflation last month, but missed economic forecasts have kept pressure on policymakers to bolster growth.

Industrial profits rose 20.4% in August from a year earlier, reversing a 1.5% year-on-year decline in July, while profits grew 0.9% in the first eight months compared to a 1.7% decline in the January-July period, National Bureau of Statistics (NBS) data showed on Saturday.

Intense competition in autos, solar and other key industrial sectors where relentless price wars have been relied on to outsell rivals has taken a toll on business margins.

Electric vehicle

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