Chi­na in­du­stri­al pro­fit growth ac­ce­le­ra­tes in Oct.

Times of Suriname - - ENGELS -

CHI­NA - Chi­na’s com­bi­ned in­du­stri­al pro­fits ro­se 9.8 per­cent year on year in Oc­to­ber, up from 7.7 per­cent in Sep­tem­ber, of­fi­ci­al da­ta showed yes­ter­day.

The ac­ce­le­ra­ti­on was at­tri­bu­ted to growth of sa­les re­ve­nue, ri­sing pro­du­cer pri­ces and the strong pro­fit growth in che­mi­cal, co­al and ge­ne­ral equip­ment sec­tors, the Na­ti­o­nal Bu­reau of Sta­tis­tics (NBS) said in a sta­te­ment.

The main bu­si­ness re­ve­nue of com­pa­nies with an­nu­al re­ve­nue of mo­re than 20 million yu­an (2.9 million U.S. dol­lars) ro­se 5.4 per­cent last month, up 1.5 per­cen­ta­ge points from Sep­tem­ber. The pro­du­cer pri­ce in­dex (PPI), which me­a­su­res costs of goods at the fac­to­ry ga­te, ro­se 1.2 per­cent year on year in Oc­to­ber, up from a ri­se of 0.1 per­cent in Sep­tem­ber. “Ri­sing pro­du­cer pri­ces are fur­ther evi­den­ce for re­co­ve­ry of in­du­stri­al pro­duct de­mand and con­tri­bu­ted sig­ni­fi­cantly to pro­fit growth in Oc­to­ber”, said NBS sta­tis­ti­ci­an He Ping. The strong che­mi­cal, co­al and ge­ne­ral equip­ment sec­tors last month dro­ve up in­du­stri­al pro­fit growth by 2.7 per­cen­ta­ge points, He Ping said.

The fi­gu­res are part of a stea­dier trend of in­du­stri­al pro­fit growth and the ma­ni­fe­sta­ti­on of sup­ply-si­de struc­tu­ral re­form. In­ven­to­ries, le­ve­r­a­ge ra­tio and cor­po­ra­te cost all drop­ped from a year ago. The in­ven­to­ries of lar­ge in­du­stri­al com­pa­nies drop­ped 0.3 per­cent, ex­ten­ding a trend that be­gan in April. Their ra­tio of li­a­bi­li­ties to as­sets stood at 56.1 per­cent at the end of Oc­to­ber, down from both Oc­to­ber 2015 and the end of this Sep­tem­ber. Last month, the aver­a­ge cost for tho­se com­pa­nies was 85.73 yu­an for each 100 yu­an of main bu­si­ness re­ve­nue, down 0.13 yu­an from Oc­to­ber 2015, the NBS da­ta showed. “De­spi­te the stea­dy pro­fit ri­se in Oc­to­ber, the struc­tu­re of the pro­fit in­crea­se is not ide­al,” He Ping said, ci­ting growth in raw ma­te­ri­al sec­tors in com­pa­ri­son with slo­wer growth in high­tech ma­nu­fac­tu­ring.

The view was echoed by Jiang Chao, a se­ni­or ana­lyst at Hai­tong Se­cu­ri­ties, who said that the pro­fit pic­kup is main­ly in up­stream in­du­stries, in­clu­ding co­al mi­ning.

So­me sec­tors ha­ve ri­sing in­ven­to­ries. Fal­ling de­mand in pro­per­ty and ther­mal co­al sec­tors will res­train over­all in­ven­to­ry ri­ses and may weigh on fu­tu­re eco­no­mic im­pro­ve­ment, Jiang ad­ded. In the first 10 months, to­tal in­du­stri­al pro- fits ex­pand­ed 8.6 per­cent year on year to 5.26 tril­li­on yu­an, fas­ter than the 8.4 per­cent ri­se for the first three quar­ters, the NBS said.

Among the 41 in­du­stries sur­vey­ed, 29 posted year-on-year pro­fit growth du­ring the first 10 months, with fer­rous me­tal pro­ces­sing, cru­de oil pro­ces­sing, as well as co­al mi­ning and was­hing sec­tors re­cor­ding the stron­gest growth.Pro­fits of sta­te-ow­ned en­ter­pri­ses in­crea­sed 4.8 per­cent in the first 10 months, slo­wer than 6.6 per­cent for pri­va­te en­ter­pri­ses.

(Xin hua)

Chi­na’s com­bi­ned in­du­stri­al pro­fits ro­se 9.8 per­cent year on year in Oc­to­ber, up from 7.7 per­cent in Sep­tem­ber, of­fi­ci­al da­ta showed Sun­day. (Xin hua)

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