Industrial profits ease again
By Wang Yanlin |
October 29, 2010, Friday
|
Print Edition
Print Edition
PROFITS of China's industrial firms continued to moderate in September due to rising production costs and a cooling manufacturing sector.
Net income of these companies in 24 regions jumped 53.5 percent from a year earlier to 2.49 trillion yuan (US$372 billion) in the first three quarters, down from the pace of 55 percent through August, the National Bureau of Statistics said yesterday.
"A slower profit growth in September is expected," said Li Maoyu, an analyst at Changjiang Securities Co. "With rising cost pressure and China's continued efforts to curb polluting projects, the growth rate will ease further in the remaining months of this year."
Li had earlier predicted the slowdown to extend into the latter half of this year but the rate may rise in 2011 or 2012 when China manages to shift more to domestic consumption to drive the economy.
State companies and private businesses with annual sales of more than 5 million yuan in 39 industries are included in the profit data. The figures came from 24 regions that provided the data and whose production made up about 82 percent of the country's total.
In the first three quarters, 37 industries tracked reported their profits rose, one said its balance sheet returned to the black, and only petroleum and natural gas exploration firms saw their profit drop from a year earlier.
An encouraging sign is that the pace of moderation in industrial profit has stabilized in recent months. The same trend was reflected in China's manufacturing sector whose output has also grown at a slower pace since the middle of this year.
China's industrial output rose an annual 13.3 percent in September, against a 13.9-percent gain in August.
Sheng Laiyun, a bureau spokesman, attributed the output slowdown to new energy conservation policies adopted by local governments to curb pollution and shift production to cleaner, more energy-efficient light industries.
Net income of these companies in 24 regions jumped 53.5 percent from a year earlier to 2.49 trillion yuan (US$372 billion) in the first three quarters, down from the pace of 55 percent through August, the National Bureau of Statistics said yesterday.
"A slower profit growth in September is expected," said Li Maoyu, an analyst at Changjiang Securities Co. "With rising cost pressure and China's continued efforts to curb polluting projects, the growth rate will ease further in the remaining months of this year."
Li had earlier predicted the slowdown to extend into the latter half of this year but the rate may rise in 2011 or 2012 when China manages to shift more to domestic consumption to drive the economy.
State companies and private businesses with annual sales of more than 5 million yuan in 39 industries are included in the profit data. The figures came from 24 regions that provided the data and whose production made up about 82 percent of the country's total.
In the first three quarters, 37 industries tracked reported their profits rose, one said its balance sheet returned to the black, and only petroleum and natural gas exploration firms saw their profit drop from a year earlier.
An encouraging sign is that the pace of moderation in industrial profit has stabilized in recent months. The same trend was reflected in China's manufacturing sector whose output has also grown at a slower pace since the middle of this year.
China's industrial output rose an annual 13.3 percent in September, against a 13.9-percent gain in August.
Sheng Laiyun, a bureau spokesman, attributed the output slowdown to new energy conservation policies adopted by local governments to curb pollution and shift production to cleaner, more energy-efficient light industries.
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