High tech manufacturing industry leads industrial enterprises to continue improving profitability in July
According to data from the National Bureau of Statistics on August 27th, the operating income of industrial enterprises above designated size increased by 0.9% year-on-year in July, and by 2.3% from January to July. In July, the profits of industrial enterprises above designated size decreased by 1.5% year-on-year, narrowing by 2.8 percentage points compared to June, and narrowing for two consecutive months. The profit decline from January to July narrowed by 0.1 percentage points compared to the first half of the year, and the profitability level of enterprises continued to improve. Especially, the high-tech manufacturing industry has seen rapid profit growth and a significant leading role.
Yu Weining, a statistician from the Industrial Department of the National Bureau of Statistics, stated that in July, industrial production above designated size maintained stable growth, and a series of policies to promote a reasonable rebound in price levels were gradually implemented, driving the sustained recovery of enterprise profitability.
Specifically, the profits of the manufacturing industry have grown rapidly, contributing significantly to the recovery of profits in large-scale industries. In July, manufacturing profits increased by 6.8% year-on-year, with a growth rate 5.4 percentage points faster than June, driving the profit growth rate of all industrial enterprises above designated size to accelerate by 3.6 percentage points compared to June. From the perspective of various sectors, the profit of the raw material manufacturing industry increased by 36.9% from a decrease of 5.0% in June. Among them, the steel and petroleum processing industries turned losses into profits year-on-year, achieving a total profit of 18.09 billion yuan and 3.46 billion yuan respectively in the same month; The consumer goods manufacturing industry decreased by 4.7%, narrowing the decline by 3.0 percentage points compared to June.
The profit of high-tech manufacturing industry is growing rapidly, and its leading role is obvious. In July, the profit of high-tech manufacturing industry increased by 18.9% from a 0.9% decline in June, driving the profit growth rate of all industrial enterprises above designated size to accelerate by 2.9 percentage points compared to June. Among them, the profit of the aerospace and equipment manufacturing industry increased by 40.9%; The profits of industries such as integrated circuit manufacturing, semiconductor device specialized equipment manufacturing, and semiconductor discrete device manufacturing increased by 176.1%, 104.5%, and 27.1%, respectively.
In the view of Liu Xiangdong, Deputy Director of the Research and Information Department of the China International Economic Exchange Center, the profitability of emerging industries such as high-tech manufacturing is improving. On the one hand, the market demand for high-tech manufacturing is broad, and under the background of policy driven independent innovation and equipment updates, the industry is in a development cycle of both quantity and price. On the other hand, high-tech manufacturing has a leading advantage in technological innovation and strong product competitiveness, playing a leading and driving role in driving steady profit growth for industrial enterprises.
The data also shows that the profits of small and medium-sized enterprises have improved significantly, and private enterprises are higher than the national average. In July, the profits of medium-sized and small industrial enterprises above designated size increased by 1.8% and 0.5% respectively from a decrease of 7.8% and 9.7% in June, indicating a significant improvement in their profitability. The monthly profit of private enterprises increased by 2.6%, which is 4.1 percentage points higher than the average level of all industrial enterprises above designated size.
Pang Ming, a specially appointed senior researcher at the National Finance and Development Laboratory, stated that in July, there were significant signs of positive and recovery in the year-on-year growth rate of profits for medium and small enterprises in industries above designated size. The main driving force behind this was the positive results of various targeted policies and measures to safeguard small and medium-sized enterprises in the early stage. The improvement of the business environment, the implementation of tax and fee reductions, the strengthening of financing support, and the improvement of service support have provided confidence and assistance to small and medium-sized enterprises, improving their operating environment and profitability.
Next, Yu Weining stated that in the context of many uncertain external factors, insufficient domestic market demand, and prominent supply-demand contradictions in some industries, it is necessary to maintain policy continuity and stability, enhance flexibility and foresight, further expand domestic demand, strengthen innovation drive, vigorously cultivate new quality productivity, promote the transformation and upgrading of traditional industries, and promote the sustained and healthy development of the industrial economy. (Reporter Guo Qian)
Information source: Economic Reference Report
