The profit data of industrial enterprises in July has been released. Among them, the operating income of industrial enterprises maintained growth, while the decline in profits continued to narrow. Yu Weining, a statistician from the Industrial Department of the National Bureau of Statistics, explained that in July, industrial production above designated size maintained stable growth, and a series of policies to promote a reasonable rebound in price levels were gradually implemented, driving the sustained recovery of enterprise profitability. According to the released data, in July, the operating income of industrial enterprises above designated size increased by 0.9% year-on-year. From January to July, industrial enterprises above designated size achieved an operating income of 78.07 trillion yuan, a year-on-year increase of 2.3%. The continuous growth of operating income since the beginning of this year has created favorable conditions for the recovery of corporate profits. ”Yu Weining said. The data shows that the profit decline from January to July narrowed by 0.1 percentage points compared to the first half of the year, and the profitability level of enterprises continued to improve. In July, the profits of industrial enterprises above designated size decreased by 1.5% year-on-year, narrowing by 2.8 percentage points compared to June, marking the second consecutive month of narrowing. From the perspective of calculating gross profit by deducting operating costs from operating revenue, the gross profit of the enterprise in July changed from a decrease of 1.3% in June to an increase of 0.1%. Among the three major categories, the manufacturing industry has achieved rapid growth in profits and has made a significant contribution to the recovery of profits in large-scale industries. According to Yu Weining, "In July, manufacturing profits increased by 6.8% year-on-year, with a growth rate 5.4 percentage points faster than June, driving the profit growth rate of all industrial enterprises above designated size to accelerate by 3.6 percentage points compared to June." "In the manufacturing industry, the profit growth rates of upstream, midstream, and downstream continue to diverge. ”Wen Bin, Chief Economist of Minsheng Bank, stated that the rise in prices coupled with increased downstream demand has driven the profit growth of the upstream raw material manufacturing industry to widen; The profit growth rate of midstream equipment manufacturing industry remains high, and the leading role of high-tech manufacturing industry is obvious; The decline in profits of downstream consumer goods manufacturing industry has narrowed. From the perspective of various sectors, the profit of the raw material manufacturing industry has increased by 36.9% from a decrease of 5.0% in June. Among them, the steel and petroleum processing industries have turned losses into profits year-on-year, achieving a total profit of 18.09 billion yuan and 3.46 billion yuan respectively in the same month. According to a macro research report by CICC, the profits of the raw material manufacturing industry have rebounded significantly due to the boost in prices from the "anti involution" policy and the low base of the same period last year. Among them, the profits of the steel and petroleum processing industries have increased significantly year-on-year. The profit of high-tech manufacturing industry is growing rapidly, and its leading role is obvious. In July, the profit of high-tech manufacturing industry increased by 18.9% from a 0.9% decline in June, driving the profit growth rate of all industrial enterprises above designated size to accelerate by 2.9 percentage points compared to June. The "two new" policies have achieved significant results, driving profit growth in related industries. Data shows that in July, driven by policies related to large-scale equipment updates, industries such as electronics and electrical machinery specialized equipment manufacturing, general component manufacturing, and food, beverage, tobacco, and feed production specialized equipment manufacturing saw rapid profit growth, with year-on-year increases of 87.9%, 15.3%, and 11.3%, respectively. Driven by the policy of exchanging old for new consumer goods, the profits of industries such as computer manufacturing, intelligent unmanned aerial vehicle manufacturing, and household cleaning and sanitation appliance manufacturing increased by 124.2%, 100.0%, and 29.7% respectively. Overall, driven by factors such as the "two new" policies and the narrowing of profit margin decline, the profit decline in July has significantly narrowed, and the profit margin of industrial enterprises above designated size has recovered from January to July, showing signs of stabilization. Looking ahead to the next stage, Wen Bin believes that with the short-term disturbance of extreme weather subsiding, both supply and demand sides gradually return to normal, orders and production rhythms are recovering, and industrial enterprise profits are expected to continue a moderate recovery trend. It is expected that the year-on-year growth rate in the month will slightly turn positive, and the cumulative growth rate will maintain a steady upward trend. According to a research report by CITIC Securities, the incremental policies in the field of people's livelihood have been implemented recently, and the third batch of trade in and "dual" funds have been issued. The Ministry of Commerce stated that it will introduce measures to expand service consumption policies in September, which is expected to boost demand. In addition, with the promotion of the governance of low price disorderly competition, price indicators are expected to show marginal improvement characteristics, which will provide support for the repair of corporate profits. (New Society)