Companies slow down profit declines | Shanghai Daily

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Companies slow down profit declines

PROFIT in China's industrial companies declined at a much slower pace in the first 10 months this year, indicating continuing improvements in the country's manufacturing sector.

Net earnings of Chinese manufacturers fell 3.4 percent from a year earlier to 1.78 trillion yuan (US$260.6 billion) in the January-October period, the National Bureau of Statistics said today.

The decline moderated from the contraction of 9.1 percent in the first three quarters and improved significantly from a 37.3 percent plunge in the first two months of this year.

But analysts cautioned the recent reduction of gas supply to industry might slow the momentum of fast recovery in manufacturing.

"Profit in the industrial sector is picking up faster than we expected. It reinforces the foundation for China's economic recovery," said Li Maoyu, an analyst at Changjiang Securities Co. "But due to insufficient power supply, it is hard for the figure to return to positive growth this year."

China's energy firms have been reducing gas supplies to industry since last Wednesday to avoid having to cut off households after heavy snow hit north China, driving up heating demand and requiring diversion of power from the south to the north to meet shortfalls.



 

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