China’s major industrial firms experienced a slight dip in profits during the first five months of the year, according to the National Bureau of Statistics (NBS). Profits declined by 1.1 percent year on year, totaling 2.72 trillion yuan (over $379.3 billion) from January to May.
Yu Weining, a statistician from the NBS, attributed the decrease to several factors, including insufficient effective demand, falling industrial product prices, and short-term fluctuations. Despite these challenges, the equipment manufacturing sector stood out, maintaining strong profitability with a 7.2 percent increase in profits compared to the same period last year. This sector contributed 2.4 percentage points to the overall profit growth of large industrial firms.
Policies aimed at large-scale equipment renewal provided a significant boost. General and specialized equipment industries saw profit increases of 10.6 percent and 7.1 percent year on year, respectively. These gains highlight the positive impact of supportive policies on specific sectors within the industrial landscape.
During the same period, major industrial firms reported a total operating revenue of 54.76 trillion yuan, marking a 2.7 percent increase year on year. This steady growth in revenue is expected to support a continued profit recovery in the coming months.
“The resilience of the equipment manufacturing sector showcases the underlying strengths of our industrial economy,” said Yu. “With ongoing support and favorable policies, we anticipate a gradual improvement in overall industrial profits moving forward.”
