Profits of China's major industrial firms grew 0.5 percent year on year in the January-August period, slowing down from a 3.6-percent rise in the first seven months of 2024, official data showed. The National Bureau of Statistics said this moderation in growth is attributed to insufficient effective market demand, the impact of high temperatures, heavy rains and floods in some regions of China, and a high base figure.

Despite such challenges, industrial profits continued their growth trend. The bureau added that new growth drivers like high-tech manufacturing maintained relatively fast growth while high-quality development of the industrial economy continued to advance steadily.

From January to August, the main business income of textile enterprises above designated size totaled CNY 1.52 trillion, increasing by 4.1% compared with the same period of the previous year; the profit of textile industry totaled CNY 45.01 billion, with year-on-year growth of 14.7%. While the main business income of enterprises above designated size in garment and accessories industry reached CNY 781.97 trillion, up by 1.1% year-on-year; the profit of garment and accessories industry reached CNY 33.90 billion, with year-on-year decline of 1.8%.

In the first eight months, the main business income of leather, fur, feather and their products and footwear industry reached CNY 541.4 billion, increased by 4.8% year-on-year; their profit totaled CNY 28.79 billion, with year-on-year growth of 6.5%.

From January to August, the main business income of enterprises above designated size in chemical fiber manufacturing industry was CNY 746.74 billion, up by 8.4% year-on-year; and its profit totaled CNY 16.27 billion, surged by 68.4% year-on-year.

The bureau warned that the foundation of the recovery in industrial profits needs to be further consolidated, as domestic demand remains weak and the external environment continues to be complex.

Looking forward, the bureau urged more efforts to foster new growth drivers and expand effective domestic demand, with a push to promote large-scale equipment upgrades and consumer goods trade-ins.

Source: CHINA TEXTILE LEADER Express