Industrial profit sees slower pace of growth
By Wang Yanlin |
August 28, 2010, Saturday
|
Print Edition
Print Edition
PROFIT of China's industrial companies continued to grow at a slower pace as the country's manufacturing sector and the overall economy extended their moderation.
Net income of Chinese industrial companies rose 61.1 percent from a year earlier in the first seven months to 1.87 trillion yuan (US$275 billion), the National Bureau of Statistics said yesterday.
The expansion weakened from the 71.8 percent growth in the first six months of the year and 83 percent through May.
"It mirrors the temporary weakness in China's manufacturing sector because the government is determined to reduce industrial pollution and energy consumption," said Li Maoyu, an analyst at Changjiang Securities Co.
He expected the slowdown to extend into the second half but predicted the rate to pick up again in 2011 or 2012 when domestic consumption was likely to be the driving force of the economy.
The moderation in profit came amid four consecutive months of slower growth in industrial production.
In July, China's manufacturing output gained 13.4 percent from a year earlier, down from the growth of 13.7 percent in June and 16.2 percent in May.
The weaker expansion signaled that policies to reduce energy consumption and cool the economy have hurt demand for industrial goods, analysts said.
But business executives in China are still confident about the sustainability of the domestic economy.
Net income of Chinese industrial companies rose 61.1 percent from a year earlier in the first seven months to 1.87 trillion yuan (US$275 billion), the National Bureau of Statistics said yesterday.
The expansion weakened from the 71.8 percent growth in the first six months of the year and 83 percent through May.
"It mirrors the temporary weakness in China's manufacturing sector because the government is determined to reduce industrial pollution and energy consumption," said Li Maoyu, an analyst at Changjiang Securities Co.
He expected the slowdown to extend into the second half but predicted the rate to pick up again in 2011 or 2012 when domestic consumption was likely to be the driving force of the economy.
The moderation in profit came amid four consecutive months of slower growth in industrial production.
In July, China's manufacturing output gained 13.4 percent from a year earlier, down from the growth of 13.7 percent in June and 16.2 percent in May.
The weaker expansion signaled that policies to reduce energy consumption and cool the economy have hurt demand for industrial goods, analysts said.
But business executives in China are still confident about the sustainability of the domestic economy.
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