Since the beginning of this year, while the overall production of the industrial economy has continued to recover and the growth of corporate revenue has accelerated, some industries still show downward pressure.

How to judge the real situation of made in China? What is the industrial trend in the second quarter and beyond? Xinhua News Agency reporters carried out research.

Revenue to positive profit squeeze, how to see the industrial trend?

Travel for three consecutive months, and large and small dealers to meet more than 40 times, such intensive visits, talks, in the view of Cao Jun, chairman of Lanhe Medical, in order to open the market as soon as possible.

Lanhe is a manufacturer of masks and medical supplies. Since the beginning of this year, the pressure on the demand side has increased, directly affecting the orders and profits of enterprises. Cao Jun said that enterprises are strengthening “digging” the market and trying to expand the profit space.

Since the beginning of this year, China has stepped up efforts to stabilize industry, strengthened assistance to enterprises, and industrial production has steadily recovered. Data from the National Bureau of Statistics show that in April, the operating income of industrial enterprises above designated size increased by 3.7% year-on-year, the growth rate accelerated by 3.1 percentage points from March, and the profits of industrial enterprises above designated size fell by 18.2% year-on-year, but the decline showed a narrowing trend.

From the perspective of the international market, during the epidemic period, developed countries generally implemented a large volume transfer payment to subsidize residents’ income, and the “advance consumption” of residents overdrew their purchasing power. In April, the global manufacturing purchasing managers’ index (PMI) was 48.6%, falling for two consecutive months, and overseas demand was lower. From the perspective of the domestic market, domestic demand still needs to be further recovered, and the lack of early consumption capacity also makes some enterprises have a backlog of inventory.

On one side is the slow growth of domestic demand and weak external demand, on the other side is the expansion of the national industrial producer price index (PPI) decline and raw materials and other cost factors, the overall recovery of industrial enterprise profits in this round is slow.

“Industry and consumption are different, and there is a process of recovery in the production system and upstream and downstream.” Qin Hailin, chief engineer of the China Institute of Electronic Information Industry Development, believes that for many industries, the current stage is still in the recovery of production and operation. At the same time, the increase in industrial added value, operating income and other indicators also reflects the recovery of production capacity and willingness of enterprises. “From the perspective of market expectations, the expected index of production and business activities is 54.7%, which continues to be at a relatively high level.”

Focus on specific industries, and the differences between different industries are obvious

Among the 41 industrial categories, the total profits of electrical machinery and equipment, general equipment, automobiles and other industries have increased to varying degrees, reflecting the gradual recovery of the downstream market.

Steel, non-ferrous metal smelting and other industries have seen significant profit declines, which is closely related to the continued downturn in real estate investment and industrial efforts to resolve excess capacity. The decline in PPI widened further in April, dragging down upstream industries such as chemical and coal related to it. The downturn in the electronic information manufacturing industry is closely related to the decline in global consumer demand for electronics. In the first quarter, global shipments of smartphones, PCS and tablets fell 14.6%, 29% and 19.1% year-on-year.

Data from the National Bureau of Statistics showed that the PMI in May was 48.8%, indicating a slight decline in the prosperity level. However, the comprehensive PMI output index was 52.9%, which continued to remain in the boom range, indicating that the overall production and operation of Chinese enterprises continued to recover and develop.

“Overall, the industry continues to recover steadily.” The relevant person in charge of the Ministry of Industry and Information Technology said that with the further obvious effect of various policies, domestic demand has gradually recovered, the momentum has been further enhanced, and the stable recovery of industrial operation has the basis and support.