Industrial prosperity index stable in Q3 (3)

The drop of inventory growth range increased

On the basis of initial seasonal adjustment, the inventory growth range dropped to 10.2 percent, 4.1 percentage points lower than the one in the last quarter and almost equal to the accumulative growth of the sales income. Experience shows that the inventory change of industrial enterprises lags behind the change of sales income and the inventory change will affect the change of sales income to a certain extent.

As for the third quarter, poor market demand, weak growth of sales income and more efforts to reduce inventory by enterprises resulted in the higher drop of the inventory growth range.

Profit drop range increased

On the basis of initial seasonal adjustment, the total profit of industrial enterprises in the third quarter decreased by 4.1 percent, with the drop range increasing by 3.1 percentage points compared with that in the last quarter; the sales profit rate of industrial enterprises was 5.3 percent, 0.1 percentage point lower than the one in the last quarter, but 0.3 percentage point higher than the one in the first quarter.

On the background of rigid increase of labor cost, the slowdown of sales income growth and the drop of product price are the main reason for the profit drop of industrial enterprises. The stable sales profit rate of enterprises means that the profitability of enterprises is not weakened significantly.

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