Great recovery compared to January-February, when there was a drop of 14%
The profits of the main Chinese industrial companies increased by 13.9% in March. According to what is shown by the official data released by the National Bureau of Statistics (NBS), the result is certainly a drastic rebound compared to the 14% drop recorded in the January-February period.
The production and sales of these companies, therefore, increased in March, with an aggregate industrial added value up 8.5% on an annual basis, 3.2 percentage points higher than in the January-February period.
Stabilization prices have served as drivers for rebounding
Operating revenues increased by 13.7% on an annual basis in March, with 10.4 percentage points more than in January-February.
As confirmed by NBS, stabilization prices have served as drivers for rebounding. Producer prices rose 0.4% year-on-year, concluding a decline that had lasted for eight consecutive months.
Price changes added 26.8 billion yuan to industrial profits
Finally, the purchase prices of raw materials increased by 0.2% compared to a year ago, ie 0.1 percentage points more than in the January-February period.
As confirmed by senior statesman Zhu Hong of NBS’s Industrial Bureau, price changes added 26.8 billion yuan to industrial profits in March and the contribution of price changes to industrial earnings growth increased by 4.5 points percentages compared to that of the January-February period.
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