China's industrial profits rise as economy firms up
Beijing: Combined profits of major Chinese industrial firms rose by 24.2 percent year on year in August, from 11.6 percent in July, pointing to further recovery of the world's second largest economy which had considerably slowed down this year.
The profits of industrial companies with annual revenues of more than 20 million yuan (USD 3.26 million) hit 483.17 billion yuan in August, the National Bureau of Statistics said in a statement.
In the first eight months, their profits rose 12.8 percent to 3.5 trillion yuan.
Among the 41 industries surveyed, 25 posted year-on-year profit growth during the January-August period, while 14 saw their profits decline.
A break-up showed that private businesses led the growth, with their combined profits up 16.2 per cent year on year in the first eight months. While state-run enterprises saw earnings up 8 per cent during the period.
Electricity, heat production and the supply industry saw profits jump 70.1 percent in the first eight months, and manufacturers of computers, telecommunication and electronics saw their gains rise 29.2 percent, state run Xinhua news agency reported.
Friday's data came after a string of other economic indicators -from factory output and retail sales to foreign trade - showed the world's second-largest economy may be gradually stabilising after a protracted slowdown.
Among the latest evidence, HSBC's preliminary reading for China's manufacturing sector showed the Purchasing Managers' Index (PMI) rose to 51. 2 in September, the highest level in six months.
Growth fell to 7.5 percent in the second quarter of the year, declining from 7.7 percent in the first quarter and 7.9 percent in the final quarter of last year sparking concerns that for the first time in recent years, the country could miss the official target set at 7.5 percent for this year.