Profits in July from China's industrial firms grew at its fastest pace in four months, thanks to a pick-up in sales and reduced costs.

According to the National Bureau of Statistics, July's profits rose 11 percent to 523 billion yuan. This gave a boost to total profits for the period between January and July, with a rise in nearly 7 percent from the same period a year earlier.

However, an official from the bureau said although the industry saw an acceleration in the growth of profits, there has not been an obvious pick up in demand.