The recovery of industrial enterprises is clearly showing a positive trend
2023-09-28
According to data released by the National Bureau of Statistics on September 27th, the profits of industrial enterprises above designated size increased by 17.2% year-on-year in August. This is the first time since the second half of last year that industrial enterprises achieved positive profit growth for the month. With a series of policies promoting macroeconomic recovery and continuously showing positive effects, industrial production has steadily rebounded, and the recovery of corporate profits has significantly accelerated. As industrial production steadily rebounds and the connection between production and sales improves, the revenue of industrial enterprises gradually improves. In the first 8 months, the operating revenue of industrial enterprises above designated size nationwide decreased by 0.3% year-on-year, a decrease of 0.2 percentage points compared to the previous 7 months. Among them, in August, the company's operating revenue achieved growth for the first time after three consecutive months of decline, from a year-on-year decrease of 1.4% in July to an increase of 0.8%, creating favorable conditions for profits to increase from a decrease. Pang Ming, Chief Economist and Research Director of Jones Lang LaSalle in Greater China, believes that the first growth in corporate revenue after three consecutive months of decline reflects the stabilization of domestic demand and a balanced recovery between supply and demand. This can be mutually confirmed by the data of a year-on-year increase of 4.5% in the added value of industries above designated size nationwide in August, and an acceleration of 0.8 percentage points compared to July. Since the beginning of this year, the decline in profits of industrial enterprises has narrowed month by month. In the first 8 months, the profits of industrial enterprises above designated size decreased by 11.7% year-on-year, a decrease of 3.8 percentage points compared to the previous 7 months, and the rebound has significantly accelerated. In August, the profits of industrial enterprises were increasing, and the key reason was the expansion of their profit space. "Liu Xingguo, a senior researcher specially appointed by the China Enterprise Federation, believes that on the one hand, under a series of favorable policies for enterprises, the operating costs of enterprises have further decreased; On the other hand, driven by many favorable policies, the overall market has rebounded, with increased consumption capacity and willingness, and the overall market price level has rebounded. In Liu Xingguo's view, the double growth of operating revenue and profit in August indicates that the economy is stabilizing and improving, which helps to enhance enterprise expectations and investment confidence, further stabilize the trend of industrial economy development, and lay a solid foundation for achieving the annual growth target. From the perspective of the three major categories of industry, the profit recovery in the mining industry has accelerated. In the first 8 months, the profit decreased by 20.5% year-on-year, which is 0.5 percentage points narrower than the first 7 months; Manufacturing profits decreased by 13.7%, with a decrease of 4.7 percentage points; The profits of the electricity, heat, gas, and water production and supply industries increased by 40.4%, with a growth rate accelerating by 2.4 percentage points. From a sectoral perspective, out of the 41 major industrial sectors, 30 have seen an increase in profit growth or a narrowing or transition from a decrease to an increase, with an improvement rate of over 70% in the industry. The new driving force of industry continues to grow, and the production of new energy vehicles, lithium-ion batteries and other products is growing rapidly. The driving force for the development of the equipment manufacturing industry is constantly increasing. In the first 8 months, the profit of the equipment manufacturing industry increased by 3.6% year-on-year, with a growth rate of 1.9 percentage points faster than the previous 7 months. The profit growth rate of the equipment manufacturing industry is 15.3 percentage points higher than the average level of industries above designated size, leading industrial enterprises to steadily recover their profits, "said Yu Weining, a statistician at the Industrial Department of the National Bureau of Statistics. From an industry perspective, the profits of the electrical machinery, railway, ship, aviation, and aerospace transportation equipment industries have maintained a high growth rate; The growth rate of profits in the automotive industry has accelerated by 1.4 percentage points
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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