Workers make solar photovoltaic modules at a factory in Hai'an, East China's Jiangsu Province on June 19, 2023. Hai'an has been ramping up efforts to upgrade the local industrial chain, aiming to further elevate the competitiveness of the PV industry. China's total export of PV products exceeded $51.2 billion in 2022, up 80.3 percent year-on-year, industry data showed. Photo: cnsphoto

Profit of China's industrial enterprises above designated size in August bounced back from negative to positive territory recording a 17.2 percent year-on-year increase, Bureau of Statistic (NBS) announced on Wednesday.

In addition, China's manufacturing PMI reached 49.7 in August, higher than 49.3 in previous month, and the added value of industrial enterprises above designated size reached 4.5 percent year-on-year increase, 0.8 percentage points faster than July.

Multiple indicators reflected upbeat signs for the country's overall economic recovery, and also reflected that series of supportive measures have taken into effect, Cong Yi, professor at the Tianjin University of Finance and Economics, told the Global Times on Wednesday.

From January to August, the profit of national industrial enterprises above a designated size hit 4.66 trillion yuan ($637.93 billion), falling by 11.7 percent year-on-year but narrowing by 3.8 percentage points over the January-July figure reported.

Specifically, in the first eight months of 2023, profit of electricity, heat generation and supply industry surged by 53.4 percent year-on-year. Profits for electrical machinery and equipment manufacturing increased by 33 percent year-on-year. Profit of auto manufacturing increased by 2.4 percent year-on-year.

"The recovery of PMI stands for a stable market confidence and projection, and enterprises' profit recovery is the real consequence which marked general situation is being improved," said Cong.

NBS' data also showed that profit of enterprises in sectors of metal, mineral processing, energy extraction suffered a decrease, while the profits of coal extraction and washing enterprises declined by 26.3 percent year-on-year, and the profit of chemical raw material and production manufacturing enterprises declined by 51.1 percent.

Cong said that the structural adjustment of China's industrial enterprises growth is ongoing, and now is the vital period of shifting the country's economic drive force from traditional industry to emerging sectors.

"China has vast industrial categories, which brings complex growth trends, and emerging sectors' contribution to the economic growth is increasing, thus the rise and fall in China's numerous industrial categories will be more common," he noted.

Global Times