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Bureau of Statistics: the growth rate of industrial profits continued to accelerate in June from a decline to an increase in the second quarter.
Jul 27,2020 09:32CST
translation
Source:Bureau of Statistics
Zhu Hong, senior statistician of the Industry Department of the National Bureau of Statistics: in the first half of this year, the profit growth rate of industrial enterprises showed a trend of "low before and then high, from decline to rise". From a quarterly point of view, the profits of industrial enterprises increased by 4.8% in the second quarter compared with the same period last year, while those in the first quarter fell by 36.7%. Especially in May and June, profits increased by 6.0% and 11.5% respectively, and the growth rate accelerated month by month.
The content below was translated by Tencent automatically for reference.

SMM: in the first half of this year, with the gradual implementation of various policies and measures for epidemic prevention and control and economic and social development, the resumption of work and production was further promoted, the order of production and operation was steadily restored, and the profit situation of industrial enterprises continued to improve.

The profit growth rate of industrial enterprises continued to accelerate in January and June.

In June, the total profits of industrial enterprises above the national scale reached 666.55 billion yuan, an increase of 11.5 percent over the same period last year, and the growth rate was 5.5 percentage points faster than that in May. The main reasons are:

First, the growth of industrial production and sales has accelerated. In June, the added value of industries above scale increased by 4.8% in real terms over the same period last year, 0.4 percentage points faster than in May, and the operating income of industrial enterprises increased by 4.2% compared with the same period last year, accelerating the growth rate by 2.8 percentage points. The expansion of enterprise scale brings about an increase in profits.

Second, the price decline of industrial products has narrowed. In June, the producer price index and the purchase price index fell by 0.7 and 0.6 percentage points respectively compared with May, both reversing the trend of continuous expansion of the decline so far this year. According to preliminary estimates, the profit growth rate of industrial enterprises above all sizes affected by changes in industrial product prices in June was 5.3 percentage points higher than that in May.

Third, the unit cost has declined. In June, the cost of industrial enterprises above 100 yuan in operating income decreased by 0.22 yuan compared with the same period last year, which decreased for the first time so far this year, alleviating the pressure on enterprise operation caused by the sharp rise in costs in the previous period. Among them, affected by the fluctuation of crude oil prices, the cost of every 100 yuan of operating income in the oil processing industry has been significantly reduced by 7.13 yuan compared with the same period last year.

Fourth, the profits of key industries such as iron and steel, oil and gas exploration, oil processing and non-ferrous metals have improved significantly. Affected by multiple favorable factors, such as improved market demand, warmer prices of industrial products, slower cost pressure, and the effectiveness of relevant support policies, profits in key industries such as iron and steel, oil and gas exploration, oil processing and non-ferrous metals have improved significantly. In June, profits in the steel and non-ferrous industries increased by 35.3% and 24.1% respectively compared with the same period last year, and fell by 50.5% and 49.3% respectively in May. Profits in the oil and gas mining industry fell 55.0%, 83.1 percentage points lower than in May. Profits in the oil processing industry increased 1.86 times, compared with 8.9% in May.

The profit growth rate of industrial enterprises has changed from a decline to an increase in the second quarter.

In the first half of this year, the profit growth rate of industrial enterprises showed a trend of "low before and then high, from decline to rise". From a quarterly point of view, the profits of industrial enterprises increased by 4.8% in the second quarter compared with the same period last year, while those in the first quarter fell by 36.7%. Especially in May and June, profits increased by 6.0% and 11.5% respectively, and the growth rate accelerated month by month.

Profit growth in most industries has picked up. In the second quarter, the profit growth rate of 37 of the 41 major industrial industries was faster than that of the first quarter (or narrowed down from negative to positive), and 25 of them achieved profit growth.

The profits of equipment manufacturing and high-tech manufacturing have improved significantly. In the second quarter, the profit of the equipment manufacturing industry increased by 31.8% compared with the same period last year, compared with a decline of 46.7% in the first quarter. Among them, the switching of environmental protection standards and the acceleration of infrastructure projects led to a marked rebound in the automobile and special equipment industry. In the second quarter, the profits of the automobile and special equipment industry increased by 26.0% and 63.5% respectively, while those in the first quarter fell by 80.2% and 34.7% respectively. Profits in high-tech manufacturing grew by 34.6% in the second quarter, the fastest-growing sector, compared with a decline of 17.1% in the first quarter. Among them, affected by the transfer of orders to China and the increase in domestic demand, the profits of the electronics industry increased by 47.6% in the second quarter, compared with a decline of 12.0% in the first quarter.

Profit growth in the consumer goods manufacturing sector has recovered. Profits in the consumer goods manufacturing industry rose 10.1% in the second quarter from a year earlier, compared with a 13.6% decline in the first quarter. Among them, the food manufacturing and textile industries rebounded more significantly, with profits growing by 36.8% and 19.0% respectively in the second quarter, while falling by 27.4% and 38.8% respectively in the first quarter.

The decline in profits in the raw materials manufacturing industry has narrowed significantly. In the second quarter, affected by factors such as the acceleration of infrastructure projects and the rebound in the prices of major raw materials, profits in the raw materials manufacturing industry fell 17.9% from the same period last year, a sharp decrease of 45.0 percentage points compared with the first quarter. Among them, due to the rebound in refined oil prices and the two-way influence of low-priced crude oil stocks, the oil processing industry made a profit of 10.45 billion yuan in the second quarter, compared with a loss of 24.7 billion yuan in the first quarter. In addition, the profits of the building materials industry increased by 6.5% in the second quarter and fell by 34.0% in the first quarter. The second-quarter profits of the chemical industry and the iron and steel industry fell by 13.5% and 34.1% respectively, narrowing by 43.0 and 21.6 percentage points respectively compared with the first quarter.

Although the profit situation of industrial enterprises obviously improved in the second quarter, on the whole, under the impact of the COVID-19 epidemic, market demand is still weak, and enterprises are still facing many difficulties in production and operation. The cumulative profits of industrial enterprises in the first half of the year still dropped 12.8% compared with the same period last year, and the profit growth structure also needs to be further optimized. At present, the global epidemic continues to spread, the international economic and trade situation is complex and grim, and there is still uncertainty about the sustainability of industrial profit growth. In the next stage, it is necessary to continue to thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, scientifically coordinate the regular prevention and control of the epidemic and economic and social development, do a solid job in the work of "six stability," and comprehensively implement the tasks of "six guarantees." we will actively implement various policies to support enterprises, stabilize the basic economic market, and constantly consolidate the momentum of the recovery of the industrial economy.

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