China’s industrial sector has shown signs of continued recovery with profit growth accelerating in the first seven months of 2024, driven by improving market demand and strengthening new growth drivers.
The combined profit of major industrial enterprises rose 3.6 percent year-on-year in the January-July period, an increase of 0.1 percentage points from the first half of the year, the National Bureau of Statistics (NBS) said in a statement on Tuesday.
In July alone, profits increased by 4.1 percent compared to the same month in 2023, while also 0.5 percentage points higher than June and marking an acceleration for two consecutive months.
NBS statistician Yu Weining highlighted that the industrial sector had maintained a steady recovery, with stable production and improvements in high-quality development.
Of the 41 major industrial sectors, 21 reported either accelerated profit growth or a narrowed decline in the first seven months of 2024, according to official data.
High-tech manufacturing served as a significant contributor to this positive trend, with profits growing 12.8 percent year-on-year, substantially exceeding the overall industrial average by 9.2 percentage points. It contributed nearly 60 percent of the total industrial profit growth.
In particular, high-end, intelligent and green development drove rapid profit increases, Yu said. For instance, profits in lithium-ion battery production surged 45.6 percent, semiconductor device manufacturing profits increased 16 percent, while smart consumer device production profits rose 9.2 percent.
The equipment manufacturing sector also saw stable growth. This sector, accounting for over a third of total industrial profits, posted a 6.1 percent increase in the January-July period, with significant gains in railways, shipbuilding, aerospace and electronics.
In addition, consumer goods manufacturing generated a robust profit increase of 10.2 percent compared with a year earlier, Yu said.
Out of 13 major consumer goods sectors, 11 saw profit growth, with eight of them experiencing growth rates exceeding 10 percent. Notably, the paper and chemical fiber industries saw their profits more than double.
Analysts believe this accelerating recovery in the industrial sector indicates a steady improvement in the broader economy. China’s GDP expanded 5 percent year-on-year in the first half of 2024.
The government has rolled out an array of measures to support economic recovery this year, including a large-scale equipment upgrade and consumer goods trade-in program and the issuance of ultra-long special treasury bonds.
Looking forward, Yu called for continued efforts to expand domestic demand and targeted measures to improve economic circulation, in a bid to foster new quality productive forces and sustain the positive trend in industrial growth.
