During the first eight months, 33 of 41

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BEIJING, Sept. 27 (Xinhua) -- China's industrial profits rose 19.5 percent year on year to 534.8 billion yuan (about 80.3 billion U.S. dollars) in August, official data showed Tuesday.

The growth rate was faster than the 11-percent increase registered one month earlier, according to the National Bureau of Statistics (NBS).

In the first eight months of the year, industrial profits expanded 8.4 percent year on year, compared with a 6.9-percent rise during the January-July period.

The bureau's calculations include companies with annual revenues exceeding 20 million yuan.

NBS statistician He Ping said the August growth rate was the fastest monthly rate so far this year. He attributed the improvement to rising production and sales, a recovery in manufactured goods prices, lower operating costs, and a lower comparison base from last year.

The bullish performance of automobile, steel and oil processing industries also pushed the August growth rate higher, He said.

Because of strong output and sales, profits in the auto industry surged 43.9 percent year on year, compared with a 19-percent increase registered in July.

During the first eight months, 33 of 41 industrial sectors reported year-on-year rising profits, with high-tech sectors, including computers and telecommunications, posting profit increases of 19.8 percent year on year.

In contrast, electricity, energy production and the supply industry witnessed a 3.9-percent decrease in profits during the same eight-month period. Oil and gas exploitation also posted losses.

Foreign-invested companies posted strong profit growth of 10 percent in the first eight months, while state-owned enterprises dropped 2.1 percent year on year.

Despite the positive profit data, He Ping warned of a grim outlook for industrial enterprises partially due to sluggish demand at home and abroad.Traditional industries, especially those beset by overcapacity, still face difficulties.

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