China’s Industrial Sector Gathers Steam as April Produces Profit Rebound

A report from Xinhua on May. 29th, 2024:

China’s industrial sector posted stronger growth momentum last month, with a sharp profit rebound suggesting sustained recovery.

Profits of China’s major industrial enterprises increased by 4 percent year on year in April 2024, reversing a 3.5 percent decline registered in the previous month, the National Bureau of Statistics (NBS) said Monday. Revenue growth of such enterprises also saw a turnaround with a 3.3 percent expansion recorded last month, compared to a 1.2 percent drop in March.

Analysts said this encouraging data was produced by a combination of government supportive policies and rising domestic demand, and that it reflected a steady broader economy.

As market demand continued to improve and industrial production picked up pace, these enterprises reported better performance last month, NBS statistician Yu Weining said.

The data showed major industrial enterprises, with an annual main business revenue of at least 20 million yuan (about 2.81 million U.S. dollars), had generated 2.09 trillion yuan in total profits in the first four months of this year, a 4.3 percent year-on-year increase, which is the same as the increase recorded in the first three months of 2024.

Yu said 75.6 percent of the 41 major industrial sectors saw an increase in profits during the January-April period this year, rising from a level of 68.3 percent in the first three months.

Manufacturers saw their profits grow by 8 percent from a year earlier and businesses in the power industry logged a 44.1 percent surge in profits thanks to lower coal costs and increased power generation. However, the mining and gas industries suffered losses during this period.

Notably, the statistician pointed out that the equipment manufacturing industry, with a 16.3 percent profit increase in the first four months, had continued to drive the growth of the whole industrial sector.