National Bureau of Statistics recently released data show that industrial corporate finance, 1-11 months, the national scale industrial enterprises realized a total profit of 5.61007 trillion yuan, down 2.1 percent, a decline narrowed 0.8 percentage points higher than 1-10 months. In November, the industrial enterprises above designated size gross profit increased by 5.4%, the growth rate from negative to positive (October after falling 9.9%). Among them, consumer goods manufacturing profits rose 8.2%, the growth rate accelerated 3.1 percentage points, petrochemicals, steel and other key industry profits significantly warmer than in October.
Turning to November industrial profits growth from negative to positive in the main, the National Bureau of Industry Division Senior Statistician Zhu Hong pointed out, first, industrial production and sales increased rapidly. In November, the added value of industrial enterprises above designated size actually increased by 6.2% year-on-year, an increase of 1.5 percentage points from October; the operating income of industrial enterprises increased by 5.3% year-on-year, and the growth rate increased by 3.8 percentage points from October. The expansion of the production scale of enterprises has brought about an increase in profits.
Second, the decline in the ex-factory price of industrial products narrowed. In November, the ex-factory price of industrial producers fell by 1.4% year-on-year, a decrease of 0.2 percentage points from October; the purchasing price of industrial producers fell by 2.2% year-on-year, and the decrease was 0.1 percentage points larger than that of October. According to preliminary estimates, changes in industrial product prices in November affected the profit growth rate of all industrial enterprises above designated size by 4.0 percentage points from October.
Huatai Securities chief macroeconomic researcher Li Chao believes that steady growth under the demands of some industrial raw materials, equipment possible efforts to increase production from the fourth quarter, a significant improvement in 11 monthly wage added value chain, November PPI lows, co-driven by volume and price rebound 11 May industrial recovery in corporate earnings as scheduled.
From the industry perspective, petrochemicals, steel and other key industry profits significantly warmer. Zhu Hong analysts said, in November, mainly due to market demand picked up, affect product prices and other factors, chemical, petroleum processing, iron and steel industry to accelerate sales growth, profit growth to pick up. In November, the profits of the chemical raw materials and chemical products manufacturing industry decreased by 0.2% year-on-year, a sharp decrease of 151.5 percentage points from October; the profits of the petroleum coal and other fuel processing industry increased by 45.5%, compared with a decrease of 31.2% in October; The profit of the rolled processing industry decreased by 16.3%, and the decrease was narrowed by 48.0 percentage points.
In addition, the data also showed that in November, the profits of state-owned holding enterprises increased by 0.6% year-on-year, reversing the trend of continuous decline since the second half of this year. Private and small business profits up 14.7% and 8.6%, respectively, the growth rate accelerated 9.9 and 5.6 percentage points higher than in October, respectively.
Li Chao believes that in November, PMI returned to the line of prosperity and dryness, industrial production data rebounded, consumption rebounded, and signs of economic stabilization began to appear. Investment performance still needs to pay attention to the impact of policy signals.