Employees work on the production line of a carmaker in Yuncheng, Shanxi province. [Photo by YAN XIN FOR CHINA DAILY]
Profits at China's industrial firms extended gains for a third consecutive month in October, pointing to further signs of a stabilizing economy.
Data from the National Bureau of Statistics showed on Monday that industrial enterprises with annual revenue of at least 20 million yuan ($2.8 million) each saw their total profits increase 2.7 percent year-on-year in October after a notable 11.9 percent rise in September.
Yu Weining, a statistician at the NBS, attributed the continued recovery in industrial profits to the steady rebound in industrial production and improved corporate profitability with a series of macro policies taking effect gradually.
For the January-October period, industrial firms' profits fell 7.8 percent year-on-year to 6.12 trillion yuan, narrowing from the 9 percent drop in the first nine months, the bureau said.
Among the 41 major industrial sectors surveyed, 30 saw improvements such as accelerated growth, narrowed profit declines, or year-on-year growth in their profits during the first ten months.
During the January-October period, profits recorded by industrial firms that offer a supply of electricity, heat, gas and water grew by 40 percent year-on-year, up from the 38.7 percent rise in the first nine months.
Meanwhile, profits recorded by mining firms and manufacturing companies shrank by 19.7 percent and 8.5 percent, respectively, in the first ten months, compared to the 19.9 percent decline and 10.1 percent contraction in the first nine months.
Notably, profits of raw materials manufacturing firms surged 22.9 percent in October amid continued recovery in downstream demand.
Profits of consumer goods manufacturing enterprises increased by 2.2 percent in October with policies on expanding demand and boosting consumption taking effect gradually, witnessing profits rise for a third consecutive month.
During the January-October period, profits at equipment manufacturing enterprises rose by 1.1 percent on a yearly basis, NBS data showed.