China’s Industrial Profits Up 3.5 Pct in H1

A report from Xinhua on Aug. 1st, 2024:

Profits of China’s major industrial firms increased 3.5 percent year-on-year in the first six months, up from the 3.4 percent increase recorded in the first five months, official data showed on Saturday.

The National Bureau of Statistics (NBS) reported that industrial profits rose by 3.6 percent year-on-year in June alone, an increase of 2.9 percentage points from May.

NBS statistician Yu Weining said China’s industrial sector witnessed a steady profit recovery in the first half of 2024, bolstered by the effective implementation of various macroeconomic policies.

In breakdown, the rapid advancement of high-end, intelligent, and green manufacturing led to a 6.6 percent year-on-year profit growth in the equipment manufacturing sector in the first half of the year, according to the NBS.

The consumer goods manufacturing sector saw a 10 percent year-on-year profit increase in the first half, the NBS noted, driven by a recovery in domestic demand, accelerated growth in industrial product exports and a low base from the previous year.

Despite the recovery, Yu highlighted that insufficient domestic demand continued to constrain improvements in corporate profits, while a complex international environment increased operational pressures on companies. The foundation for industrial profit recovery still needs to be consolidated.

Looking ahead, Yu said efforts will focus on expanding domestic demand, developing new quality productive forces and fostering new growth drivers to underpin the recovery of the industrial economy.