The profit growth of industrial enterprises has significantly accelerated
2023-12-28
With the continuous manifestation of macroeconomic policy effects, the profit growth of industrial enterprises in China has significantly accelerated. In the first 11 months, the profits of industrial enterprises above designated size nationwide decreased by 4.4% year-on-year, narrowing by 3.4 percentage points compared to the previous 10 months, continuing the trend of monthly narrowing since March. The profit decline narrowed to within 5% for the first time this year. From November, it can be seen that the profits of industrial enterprises have accelerated their recovery, and with relatively concentrated investment income recorded, the profits of industrial enterprises above designated size in November increased by 29.5% year-on-year, which is significantly faster than October. The profits have achieved positive growth for four consecutive months. "Industrial production is accelerating its recovery, and the level of production sales linkage has increased year-on-year, promoting continuous improvement in enterprise revenue." Yu Weining, a statistician at the Industrial Department of the National Bureau of Statistics, said that in the first 11 months, the operating revenue of industrial enterprises above designated size increased by 1% year-on-year, with a growth rate of 0.7 percentage points faster than the first 10 months. Among them, the operating revenue of industrial enterprises above designated size increased by 6.1% year-on-year in November, with a growth rate of 3.6 percentage points faster than October, and has rebounded for five consecutive months, effectively driving the growth of enterprise profits. In the first 11 months, nearly 60% of industry profits increased, while 80% of industry profits rebounded. Among the 41 industrial sectors, 24 industries saw a year-on-year increase in profits, with a profit growth rate of 58.5%, an increase of 14.6 percentage points compared to the previous 10 months; 33 industries saw an increase in profit growth compared to the previous 10 months, with a narrowing or transitioning from a decline to an increase. The profit recovery rate was 80.5%, an increase of 7.3 percentage points compared to the previous 10 months. Zhou Maohua, a macro researcher at the Financial Market Department of Everbright Bank, believes that the dual growth in revenue and profit of industrial enterprises above designated size in November reflects the continued improvement in the overall operating conditions of the industrial sector. Industrial revenue has expanded for 5 consecutive months, net profit has increased for 4 consecutive months, market demand continues to recover, and the premium ability of enterprises has slightly improved, driving the recovery of industrial enterprise profits. More than 80% of industries have seen a rebound in profit growth, indicating a broader recovery in the industrial sector. From a specific industry perspective, the profit growth of the equipment manufacturing industry is accelerating, and its driving effect is enhanced; The profit decline in the raw material industry has significantly narrowed, making a significant contribution to the improvement of profits in large-scale industries; The profit growth rate of the electrical and water industry continues to accelerate. In the first 11 months, the profit of the equipment manufacturing industry increased by 2.8% year-on-year, with a growth rate of 1.7 percentage points faster than the first 10 months, driving the growth of industrial profits above designated size by 0.9 percentage points, an increase of 0.6 percentage points compared to the first 10 months. In November, the profit of the equipment manufacturing industry increased from a decrease, with a growth rate of 16.2%. In the first 11 months, the year-on-year decline in profits in the raw material manufacturing industry narrowed by 8.5 percentage points compared to the first 10 months, driving a decrease of 1.8 percentage points in profits in industries above designated size, making it the industry sector with the largest contribution. The profits of the electricity, heat, gas, and water production and supply industries increased by 47.3% year-on-year, with a growth rate of 7.3 percentage points faster than the previous 10 months. Among them, driven by factors such as sustained macroeconomic improvement and peak winter electricity supply, the growth of electricity generation and sales has significantly accelerated. Coupled with factors such as year-on-year decrease in fuel prices and cost reduction, the profit of electricity and heat production and supply industry has increased by 58.2%. From the perspective of enterprise types, profits of different types of enterprises have improved,
Edit：Hou Wenzhe Responsible editor：WeiZe
Source：economic daily
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