August industrial profits fell to expand industrial production remains weak

Photo: CFP

A macroeconomic data released today shows once again the soft state of the Chinese economy.

National Bureau of industrial enterprise financial data shows released on September 28, 1-August, total profits of industrial enterprises above the designated size down 1.9% drop 0.9% larger than 1-July. In August, total profit for the month dropped as much as 8.8% YOY decline 5.9% larger than in July.

Data further showed that 8 months before, in industrial enterprises above the designated size, total State-holding enterprises realized profits of 756.42 billion yuan, down 24.7%; collective enterprise profits totaled 29.92 billion yuan, a drop of 0.3%.

Joint-stock enterprise profits totaled 2,528,260,000,000 yuan, down 1.7%, foreign and Hong Kong and Macao enterprises with investment profit totaled 931.34 billion yuan, an increase of 0.7%; private sector profit of RMB 1,331,940,000,000, or 7.3%.

In addition, the total mining industry realized a profit of 190.15 billion yuan, down 57.3%; manufacturing profit totaled 3,216,130,000,000 yuan, an increase of 4.5% power, heat, gas and water production and supply industry profits totaled 359.99 billion yuan, an increase of 13.1%.

Statistics analysis of industrial division of molss, said August industrial profits fell the main causes included, costs rise faster than sales. Data show that in August, sales of industrial enterprises above the designated size up 0.8% rate 0.5% higher than in July. And cost rose 1.1%, growth in July, increasing 0.7 100 points.

Meanwhile, prices drop to expand. Due to weak demand in the market of industrial products in August, factory prices of industrial products dropped 5.9% drop 0.5% larger than July; purchasing prices of raw materials fell 6.6% drop 0.5% larger than in July.

Exchange loss finance charges increased rapidly. From currency fluctuations, some export-oriented enterprises marked increase in exchange rate losses, significant increase in finance charges. In August, the financial expenses grew by 23.9% of industrial enterprises above designated size in July and fell 3%.

Petroleum, automotive and chemical industry profits also fell significantly. According to the data, oil, cars and chemicals 5 industry total impact profit growth of industrial enterprises above the designated size back up to 5.4%.

He ping, while August industrial profits fell to expand, but the finished goods inventory growth slowed slightly. In late August, above-scale industrial enterprise finished stock rose 5.7%, an increase of falling for two consecutive months. Finished goods inventory growth slowed, a business-friendly release pressure on the stock, easing difficulties in production and management. Li keqiang in Davos quipped said revaluation "lies

But for some time now, institutions such as the Asian Development Bank and the IMF had downgraded China's GDP growth this year, predicting impossible 7% of the economic growth target for the year.

On September 23, the caixin, China manufacturing purchasing managers ' index (PMI) initial value data is also down again. Initial data was recorded for 47 in August, representing a decrease of 0.3%, down from 0.1% in early August. So pessimistic that the report, the second half of "broken 7" a foregone conclusion.

Livelihood security macro reviews August industrial profits data, also said the data released today showed that industrial production remains weak. The mainstay of GDP decrease in the financial industry in the first half, breaking 7 a foregone conclusion in the second half, the traditional "real estate + manufacturing + export" model is not sustainable.

The Agency stressed that future early to accomplish goals, steady growth will continue to raise.