Beijing: Annual growth of China’s industrial profits quickened to 22.8% in November from October’s 20.5%, official data showed on Thursday, reinforcing signs of a steady economic recovery thanks to pro-growth policies.
Chinese industrial firms made 638.5 billion yuan ($102.4 billion), China’s National Bureau of Statistics (NBS) said in a statement published on its website.
A second month of strong double-digit profit growth reinforces the view of analysts that China’s economy has gathered momentum in the fourth quarter. Factory profits rose only 7.8% in September from a year earlier.
Industrial profits in the first 11 months of 2012 totalled 4.66 trillion yuan, up 3% from a year earlier, the bureau said. For the January-October period, profits had been up only 0.5% from a year earlier.
Among 41 sectors surveyed by the bureau, 30 reported rising profits in the first 11 months, led by a 62.9% jump for power generation firms, a 16.6% rise for food processing firms and 11.5% for telecommunications equipment makers.
But some sectors are still struggling, with profits of ferrous metal smelting firms tumbling 47.9% while earnings of chemical companies falling 10.1%.
In the first 11 months of 2012, losses among oil processing, coking and nuclear fuel processing firms were more than four times larger than what they lost a year earlier.
China’s economy is strengthening in the fourth quarter, following seven straight quarters of slower growth, thanks to new pro-growth policies rolled out by the government in recent months, including approvals for $157 billion worth of infrastructure projects.
According to a Reuters poll, China is on course to achieve growth of 7.7% in 2012, the slowest full year of expansion since 1999.
Chinese leaders have promised to maintain a “prudent” monetary policy and pro-active fiscal policy in 2013, leaving room for manoeuvre in the face of global economic risks while deepening reforms to support long-term growth.REUTERS