The profits of 14 industries increased by more than 5% and the profits of industrial enterprises continued to recover

In the first seven months, the revenue of industrial enterprises above designated size increased by 8.8% year-on-year——

The benefits of industrial enterprises continue to recover

Data released by the National Bureau of Statistics on August 27 showed that from January to July, the operating income of industrial enterprises above designated size across the country was 76.57 trillion yuan, a year-on-year increase of 8.8%; the total profit was 4,892.95 billion yuan, a year-on-year decrease of 1.1%. According to Zhu Hong, a senior statistician from the Industry Department of the National Bureau of Statistics, overall, the profitability of industrial enterprises continues to recover, but the sustained and stable recovery of the industrial economy still requires hard work.

The profits of 14 industries increased by more than 5%

Data from the National Bureau of Statistics show that among the 41 major industrial sectors, the profits of 16 industries have increased year-on-year, which is the same as that in the first half of the year, and the profits of 14 industries have increased by more than 5%. Which industries are performing better?

The profits of the equipment manufacturing industry continued to recover, and the profits of the automobile industry rebounded rapidly. Benefiting from favorable factors such as the continuous recovery of the supply chain of the industrial chain and the policy of reducing and exempting vehicle purchase tax to boost consumer demand, the profit of the equipment manufacturing industry fell by 5.7% year-on-year from January to July, but the rate of decline narrowed by 2.1 percentage points compared with the first half of the year. In July, the profit of the equipment manufacturing industry increased by 6.8% year-on-year, and the growth rate was 2.7 percentage points faster than that in June, rebounding for three consecutive months.

In July, the profit of the automobile manufacturing industry increased by 77.8% year-on-year, and the growth rate was 30.1 percentage points faster than that in June. , 25.6%, both achieved rapid growth; the general equipment manufacturing industry profit increased by 5.9%, and the growth rate accelerated by 0.9 percentage points.

The mining industry continued to support the profit growth of industrial enterprises, and the profit of the power industry improved significantly. With the continuous efforts to ensure energy supply during the summer peak, coal crude oil production and power generation have achieved rapid growth, which has driven the increase in profits of related industries. From January to July, the profits of the mining industry increased by 1.05 times year-on-year, driving the profits of industrial enterprises above designated size to increase by 10.3 percentage points; the decline in profits of the production and supply industries of electricity, heat, gas and water narrowed by 5.6 percentage points compared with the first half of the year, and the profit improvement was more obvious .

The profits of the coal mining and selection and oil and gas mining industries increased by 1.41 times and 1.19 times respectively, continuing to maintain high-speed growth; the profit decline of the power industry narrowed by 7.3 percentage points compared with the first half of the year.

Xu Hongcai, deputy director of the Economic Policy Committee of the China Policy Science Research Association, said in an interview with our reporter that some industries recorded better performance in the first July, such as the rapid growth of profits in the automobile manufacturing industry, reflecting the promotion of consumption in the early stage. A series of policies have been effective.

Price changes affect profit growth

"The revenue of industrial enterprises has grown rapidly, and profits have declined slightly." Zhu Hong described this when analyzing the operation of industrial enterprises in the previous July. In the first half of the year, the profits of industrial enterprises above designated size in the country increased by 1.0%. What factors caused the changes in the data in the previous July?

From the perspective of the three-factor framework of quantity, price and cost that determine corporate profits, the price factor fluctuates greatly.

"The effect of price changes on the profit growth of industrial enterprises has weakened." Zhu Hong introduced that since the beginning of this year, the increase in the ex-factory prices of industrial products has dropped month by month. In July, the national industrial producer price index (PPI) rose by 4.2% year-on-year. The increase was 1.9 percentage points lower than that of the previous month. The price increase of industrial products gradually fell from the high level, and the driving effect on the income and profit growth of industrial enterprises gradually weakened. Preliminary calculations show that the factor of falling price growth caused the profit growth rate of industrial enterprises above designated size in the first seven months to drop by 2.3 percentage points compared with the first half of the year.

Multiple factors have caused the profit decline of the raw material industry to expand. From January to July, the profit of the raw material manufacturing industry fell by 21.6% year-on-year, and the rate of decline increased by 7.6 percentage points compared with the first half of the year. The profit growth rate of industrial enterprises above designated size fell by 2.2 percentage points compared with the first half of the year. It is the industry sector with the largest profit growth rate of industrial enterprises .

"Overall, the profitability of industrial enterprises continues to recover. However, due to various factors, corporate profits have declined slightly, and the cost level is still high. The lack of market demand in some industries has become prominent, and operating pressure has increased. The situation is becoming more complicated and severe, and the sustained and stable recovery of the industrial economy still requires hard work." Zhu Hong said.

Create favorable conditions for benefit recovery

In the opinion of many experts, the latest data on the benefits of industrial enterprises shows that the economic recovery is still in the stage of climbing over the hurdles, and it is necessary to consolidate the foundation of economic recovery and development with a sense of urgency.

The operation of industrial enterprises is closely related to the overall trend of the macro economy. The executive meeting of the State Council held on August 24 pointed out that the current economic recovery continued in June, but there were small fluctuations, and the recovery foundation was not solid.

Zhang Liqun, a researcher at the Macroeconomic Research Department of the Development Research Center of the State Council, believes that in the first half of this year, especially since May, the policy of stabilizing growth has continued to increase, and the effect has continued to appear, especially the increase in the policy of helping companies to bail out is the key to promoting It is an important supporting force for the improvement of the production and operation conditions of enterprises, and its role will be further strengthened in the later stage.

The executive meeting of the State Council on the 24th made it clear that while implementing a package of policies to stabilize the economy, 19 more follow-up policies will be implemented to form a combined effect and promote economic stabilization and improvement. Including an increase of more than 300 billion yuan on the basis of the 300 billion yuan of policy-based development financial instruments that have been allocated to the project; approval to start a batch of infrastructure projects with mature conditions, etc.

Xu Hongcai believes that in the future, investment efforts will be made, and a number of support policies will be implemented quickly, which is expected to provide support for economic recovery. "In the next stage, we must resolutely implement the decisions and deployments of the Party Central Committee and the State Council, efficiently coordinate epidemic prevention and control and economic and social development, maintain a stable and smooth industrial chain and supply chain, actively expand effective investment, continuously release consumption potential, and increase efforts to help companies bail out. Create favorable conditions for the continued recovery of industrial enterprises' profits." Zhu Hong said. (Reporter Li Jie)