China’s Major Industrial Enterprises Report 5.23 Trillion Yuan Profit Amid Decline
Beijing, The Gulf Observer: China’s major industrial enterprises reported combined profits of 5.23 trillion yuan ($735.41 billion USD) in the first nine months of 2024, marking a 3.5% year-on-year decline, according to the National Bureau of Statistics (NBS). While industrial profits saw a dip, high-tech manufacturing sectors experienced notable growth, reflecting resilience within certain areas of China’s industrial economy.
NBS statistician Yu Weining highlighted that while overall industrial profits dropped, high-tech industries surged ahead, showcasing China’s shift toward innovation-driven sectors. The high-tech manufacturing industry posted a 6.3% profit increase year on year, driven by rapid production growth, which contributed 1.1 percentage points to overall profit growth. This growth rate outpaced the average for major industrial sectors by 9.8 percentage points.
In contrast, the industrial sector faced challenges including a high base effect in year-on-year comparisons since August, weaker demand, and declining product prices, which contributed to September’s steep 27.1% profit drop year on year.
Efforts to expand domestic demand and bolster consumption have benefited the consumer goods manufacturing industry, which saw a 2.4% profit increase year on year from January to September. This added 0.5 percentage points to the overall industrial profit growth.
Despite the current slowdown, Yu expressed optimism, noting that rising confidence among enterprises and stabilization efforts are likely to support a gradual recovery in industrial profits in the coming months.
