The profits of industrial enterprises above designated size continued to improve in May
——Sun Xiao, a statistician from the Industrial Department of the National Bureau of Statistics, interprets the profit data of industrial enterprises
In May, as industrial production continued to resume, the decline in profits of industrial enterprises continued to narrow, and the performance of enterprises showed the following main characteristics:
First, the decline in profits of industrial enterprises continued to narrow. In May, the profits of industrial enterprises above designated size across the country fell by 12.6% year-on-year, which was 5.6 percentage points lower than that in April, narrowing for three consecutive months, and corporate profits showed a steady recovery trend. Among them, the manufacturing industry, with various policies and measures to promote its development, has gradually become effective, and its profits have improved significantly. The decline in manufacturing profits in May narrowed by 7.4 percentage points compared with April, which led to a reduction in the decline in industrial profits above the designated size by 4.9 percentage points. From January to May, the profits of industrial enterprises above the designated size fell by 18.8% year-on-year, and the rate of decline was 1.8 percentage points narrower than that from January to April.
Second, the profits of the equipment manufacturing industry maintained rapid growth, and the profit structure of industrial enterprises continued to improve. In May, the profit of the equipment manufacturing industry increased by 15.2% year-on-year, maintaining double-digit growth for two consecutive months, driving the industrial profits above the designated size to increase by 4.6 percentage points, and it is the industry sector that contributed the most. The profit of the equipment manufacturing industry accounted for 39.6% of the above-designated industries, an increase of 5.3 percentage points from April, rising for three consecutive months, and the industry structure of industrial enterprises’ profits has improved significantly. In terms of industries, due to the rapid growth of automobile sales, the booming production and sales of new energy vehicles, and the increase in investment income, the profits of the automobile manufacturing industry increased by 1.02 times; the electrical machinery industry was driven by new energy products such as photovoltaic equipment and lithium-ion batteries. Profit increased by 27.3%; general equipment, special equipment, and instrumentation industries were driven by products such as central air-conditioning, medical equipment, and industrial automatic control systems, and their profits increased by 30.9%, 27.7%, and 26.6% respectively.
Third, the decline in the profits of the consumer goods manufacturing industry narrowed, boosting the improvement of the profits of industrial enterprises. In May, with the continuous recovery of consumer demand, the profit decline of the consumer goods manufacturing industry narrowed by 17.1 percentage points compared with April, which led to a narrowing of the profit decline of regulated industries by 2.9 percentage points. Among them, the profits of the leather shoemaking and textile and clothing industries increased by 1.05 times and 47.0% year-on-year respectively, and the profit improvement was obvious; the profits of the alcoholic beverage refined tea and food manufacturing industries increased by 10.3% and 8.4% respectively, and the growth rates accelerated by 8.4 and 2.9 percentage points respectively; The decline in profits of the pharmaceutical manufacturing industry narrowed by 22.0 percentage points.
Fourth, the profits of the electrical and water industries maintained rapid growth. In May, the profits of the electricity, heat, gas and water production and supply industry increased by 35.9% year-on-year, continuing to maintain rapid growth. In terms of industries, with the in-depth promotion of power supply guarantees for peak summer, power generation continued to grow, and the profits of the power industry increased by 40.7%; the profits of the gas production and supply industry and the water production and supply industry increased by 18.8% and 28.9% respectively.
Fifth, the profits of enterprises of different sizes have improved. In May, among the industrial enterprises above designated size, the profits of large, medium and small enterprises decreased by 16.8%, 8.1% and 8.1% year-on-year respectively, and the decline rate was 6.0, 7.4 and 3.2 percentage points lower than that in April.
Overall, the profits of industrial enterprises continue to recover, but it must also be noted that the external environment is becoming more complex and severe, and domestic demand is still insufficient, which restricts the further recovery of corporate profits, and the foundation for the recovery of industrial enterprises’ profits is still not solid. In the next stage, it is necessary to resolutely implement the decisions and deployments of the Party Central Committee and the State Council, implement detailed policies and measures to promote the sustained recovery of the economy, focus on expanding effective demand, improve the level of connection between production and sales, deeply implement the innovation-driven development strategy, continuously enhance development momentum, and promote The industrial economy continued to consolidate and recover.