The profits of China's industrial enterprises above a designated scale hit 2.67 trillion yuan ($369.37 billion) from January to May in 2023, declining by 18.8 percent year-on-year, narrowing 1.8 percentage points over the January-April reading as Chinese economy continued to recover, the National Bureau of Statistics (NBS) said on Wednesday.

In May, the profits of the designated industrial enterprises reached 635.81 billion yuan, declining by 12.6 percent year-on-year. The decline narrowed by 5.6 percentage points from April, maintaining the narrowing trend for three consecutive months.

Profits in the equipment manufacturing sector maintained rapid growth boosted by ongoing supportive policies. Profits in the sector saw a 15.2 percent year-on-year increase in May, lifting profit across all designated industrial enterprises by 4.6 percentage points.

Auto manufacturing sector profits surged 1.02 fold due to a spike in sales and increased investment. Profit of new-energy products such as photovoltaic panels and lithium batteries surged by 27.3 percent year-on-year, according to the NBS.

There was a profits decline in consumer goods manufacturing sector in May narrowed by 17.1 percentage points from April with retail spending continuing to recover. Leather shoes, textiles and clothing saw 105 percent and 47 percent year-on-year increase in profit.

Analysts from the NBS said the profits of designated industrial enterprises is still heading toward a full recovery despite headwinds created by instability in offshore markets and weak demand in the domestic market, which capped industry profit growth.

The NBS vowed to further implement supportive policies, expand market demand, and strengthen the linkage between phases of produce and sale.

This article originally appeared in the globaltimes.cn