In a sign of renewed vigor in the post-pandemic recovery, China's larger enterprises reported a 5.4% increase in industrial output for September compared to the same month last year, as highlighted by the National Bureau of Statistics (NBS). This upward trend is part of a broader narrative, as the overall industrial output for the first nine months of the year demonstrated an increase of 5.8% from the same period last year. A closer examination of the data reveals that specific sectors experienced significant growth in September.
The output from semiconductors surged by an impressive 17.9%, while computers, communications, and electric equipment also saw a healthy rise of 10.6%. Meanwhile, the production of rail, ships, and airplanes increased by 13.7%, reflecting a robust recovery in transportation-related manufacturing. Contrasting this positive growth, the automotive sector witnessed a 4.6% rise in output year-over-year, bolstered by strong exports of electric vehicles (EVs).
Indeed, reports from ING Think indicate that China's EV exports continue to gain traction in many international markets, attributing their success to competitive pricing and quality. However, not all sectors enjoyed growth. The cement industry saw a notable decline of 10.3% in output, and the crude steel market faced a drop of 6.1%, while overall steel products fell by 2.4%.
This dip underscores the uneven recovery within different manufacturing sectors. Despite these fluctuations, a considerable number of industries are thriving. According to the NBS, 36 out of 41 major sectors ramped up production in September, demonstrating a strong rebound. Financial performance has seen mixed results as well.
The profitability of large industrial enterprises has somewhat stagnated in 2024, with total profits in the first eight months experiencing a marginal increase of just 0.5% year-over-year. On a more positive note, fixed-asset investment in the manufacturing sector rose by 9.2% year-over-year during the first three quarters, showcasing China's ongoing commitment to expanding its productive capacity, as indicated by the NBS..