Monday, December 29, 2008

Chinas industrial profits decline

The National Bureau of Statistics says China's major industrial firms reported over 2.4 trillion yuan, or nearly 354 billion US dollars in profits in the first 11 months of this year.











TheNationalBureauofStatisticssaysChina'smajorindustrialfirmsreportedover2.4trillionyuan,ornearly354billionUSdollarsinprofitsinthefirst11monthsofthisyear.



TheNationalBureauofStatisticssaysChina'smajor
industrialfirmsreportedover2.4trillionyuan,or
nearly354billionUSdollarsinprofitsinthefirst
11monthsofthisyear.



The growth in volume is up 4.9 percent over the same period last year. But it's nearly 32 percentage points LOWER than the growth recorded in 2007.



In China, major industrial enterprises are defined as those with more than 5 million yuan in annual revenues.



Analysts say the adverse external economical environment along with weak domestic demand are contributing to the unsatisfactory performance.



Wang Yuanhong, Senior Economist of State Information Center, said, "The investment and market demand, as well as the domestic and international economic environment experienced considerable changes in the third quarter of this year. The automobile and real estate markets have been dwindling for quite a long time. As a result, the market demand for iron and steel, non-ferrous metals and construction materials are dropping. And that is leading to a noticeable plunge in the prices of these products. The profits of these sectors have also been affected."







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