Industrial economy reverses the slowdown in growth

Zhu Hongren, chief engineer and spokesperson of the Ministry of Industry and Information Technology, said at the economic operation conference held on the 22nd that in the first half of this year, China's industrial economy reversed the trend of sharp decline in growth rate, but the foundation for stable industrial growth is still not stable. .
Zhu Hongren said that since the beginning of this year, the momentum of the sharp decline in industrial growth has been curbed, and the situation of stabilization and recovery has gradually become clear, and the overall operation is developing in a positive direction. The growth rate of industrial production has been rising steadily, and the overall profitability has improved.
According to the National Bureau of Statistics, in the first half of the year, the added value of industrial enterprises above designated size increased by 7% year-on-year, of which light and heavy industries increased by 8.2% and 6.6% respectively, which was 1.4 and 2.1 percentage points higher than the first quarter. In June, 7 of the 12 major industrial sectors grew faster than last month. In the first five months, the profits of industrial enterprises above designated size fell by 22.9% year-on-year, and the decline was 14.4 percentage points lower than that of January-February; 26 countries nationwide The province's industrial profit and loss situation is better than January-February.
With investment promotion and policy support, the recovery of raw material industry and equipment manufacturing industry has accelerated. In the first half of the year, the added value of the raw materials industry increased by 6.9% year-on-year. The added value of the equipment manufacturing industry (including automobiles and ships) increased by 9.2% year-on-year, with the growth rate in June reaching 11% and 13% respectively.
Zhu Hongren also said that there are many uncertain factors affecting the economic operation, and the foundation for industrial stability and recovery is still not stable.
First, insufficient external demand remains the main factor constraining China's economic growth. In the global economic downturn, China's foreign trade export value fell by 21.8% in the first half of the year, steel exports fell by 59.7% year-on-year, and mechanical and electrical products and high-tech products fell by 21.2% and 21.3% respectively.
Secondly, illegal construction and blind expansion have increased the contradiction of overcapacity. In some industries, overcapacity and blind investment are still outstanding. In the first five months, some new steel construction projects were not approved for construction or illegal construction; national cement investment increased by 78.6% year-on-year, and more than 200 cement production lines are under construction, with new capacity exceeding 200 million tons. The overcapacity of the shipbuilding industry is about 16 million deadweight tons, accounting for about 1/4 of the total capacity. The fixed assets investment of the shipbuilding industry in the first five months still increased by 55.5%.
Third, the quality of operation needs to be improved, and the foundation for recovery needs to be stable. In the first half of the year, the ex-factory price of industrial products decreased by 5.9% year-on-year, and the purchase prices of raw materials, fuels and power decreased by 8.7% year-on-year, of which they decreased by 7.8% and 11.2% respectively in June. Due to the decline in prices, the increase in production of enterprises has not increased, and the situation of sharp decline in benefits has not been significantly improved. From January to May, the income from the main business of industrial enterprises above designated size decreased by 0.8% year-on-year, among which the profit of profitable enterprises fell by 17%, the loss of loss-making enterprises increased by 14.3%, the loss amount reached 23%, and 19 of the 39 industrial categories were The profit of the industry declined year-on-year. A considerable number of enterprises had insufficient orders, and production and operation were difficult. The shortage of funds for SMEs was still very prominent.

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