Chinese Industrial Profits Show Positive Growth for Three Consecutive Months
Data released by the National Bureau of Statistics on November 27 showed that in October, the profits of industrial enterprises above designated size nationwide increased by 2.7% year-on-year, achieving positive growth for three consecutive months, and the efficiency of industrial enterprises continued to improve.
The continued recovery in industrial profits has been attributed to the steady rebound in industrial production and improved corporate profitability. Yu Weining, a statistician at the NBS, stated that a series of macro policies have taken effect gradually, contributing to this positive trend.
For the January-October period, industrial firms’ profits fell 7.8 percent year-on-year to 6.12 trillion yuan, narrowing from the 9 percent drop in the first nine months. Among the 41 major industrial sectors surveyed, 30 saw improvements such as accelerated growth, narrowed profit declines, or year-on-year growth in their profits during the first ten months.
While profits recorded by mining firms and manufacturing companies shrank by 19.7 percent and 8.5 percent, respectively, in the first ten months, profits of raw materials manufacturing firms surged 22.9 percent in October amid continued recovery in downstream demand. Consumer goods manufacturing enterprises also saw profits increase by 2.2 percent in October with policies on expanding demand and boosting consumption taking effect gradually.
During the January-October period, profits at equipment manufacturing enterprises rose by 1.1 percent on a yearly basis, according to NBS data.
The positive trend in industrial profits points to further signs of a stabilizing economy in China, indicating that the economy is further stabilizing and improving. This news is a good sign for China’s economic recovery.