Profit of enterprises in the period January-May this year
It is customary to supply the latest data on the profits of companies achieved during the period January-May this year, as well as the indicators of industrial activity and services recorded in June.
The profits of companies in January-May this year are inactive decreasing. This time by 18.8% in terms of year/year, which means a decrease of 1.8% little than in the period January to April this year. This shows little, but the first reversal of the trend in many months.
All companies in China, regardless of the form of ownership (state companies, joint stock companies, abroad and private companies) recorded a decrease in profits.
The most painful drop in profits affected private companies and amounted to 21.3% y/y.
In 41 industrial sectors, from January to May this year, 14 industries saw a year-to-year increase in profits, 1 situation remained unchanged, in 24 industries the decline in profits deepened, and 2 sectors from the profit region went into the failure zone. The image in manufacture (production) is so varied.
Increases in profits have been recorded in peculiar in:
- production and supply of electricity and heat,
- Manufacture of electrical machinery and equipment,
- production of cars.
The decline has been noted in areas specified as:
- oil and gas extraction and processing,
- coal extraction and processing, non-ferrous metals,
- textile industry,
- agriculture and food processing,
- Manufacture of computers and another electronic equipment
- production of chemical natural materials and chemical products.
In these last 2 areas, profits fell by 49.2% and 52.4% respectively (!!!).
Assets, equity but besides liabilities, receivables, stocks and costs grow in companies.
Government-led stimulus measures support the hope that the current situation will gradually improve.
Source:
PMI June 2023
The manufacture PMI activity rate reached 49 points.
For services, the PMI rate in June this year is 53,2 points, which means that in the first half of that year this rate did not fall below the 50 point limit.
In June the PMI for manufacture somewhat increased compared to May (12 out of 21 areas surveyed).
Sectors specified as:
- production of cars,
- the construction of ships,
- production of rolling stock,
- production of aviation equipment,
- production of electrical machinery and equipment,
- production of electronic equipment.
In these sectors, recovery of request is noticeable.
The 4th period in a row is reduced by the number of companies that in the statistical survey would point to problems with rising natural materials costs and advanced logistical costs. This means reducing the cost force on companies.
In June, the trend in the condition of companies was strengthened. Large companies are doing much better (PMI in June 50.3), while average and tiny companies are in a stagnation zone. PMI for medium-sized companies amounted to 48.9 points in June and for tiny 46.4 points. In the case of tiny companies, it is another decrease in the ratio of period to month.
In the non-production sector (services) moods are much better. In June, the PMI main indicator was 53.2. A revival is observed, especially in air transport, courier, postal, telecommunications, tv and satellite, financial and insurance services.
In these sectors, June PMI surpassed 65 points.
The PMI for services in the construction manufacture reached 55.7 points in June.
China's economical situation is inactive comparatively unstable. At least mild growth in all industrial and service sectors is not simple and will require greater support from the central authorities and local governments. The Beijing decision-makers are aware of the situation and constantly stress the request for further incentives. tiny Chinese companies are waiting for concrete action. Time's moving out. And by the end of the year, there were only six months left.
Source:
http://caijing.chinadaily.com.cn
Author: 梁安基 Andrzej Z. Liang, 上海 Shanghai, 中国 China
Email: [email protected]
Editorial: Leszek B.
Email: [email protected]
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