(Yicai) Oct. 27 -- China’s industrial profits posted double-digit growth in September from a year ago for the second straight month as policies to stabilize the economy take hold and demand continues to improve, according to the latest data.

The profits of industrial enterprises above a designated size, which refers to those with an annual revenue of at least CNY20 million (USD2.7 million), surged 11.9 percent last month from the same time last year, according to figures released today by the National Bureau of Statistics.

This resulted in a 7.7 percent leap in industrial profits for the third quarter, ending five consecutive quarters of decline, the NBS said. But such profits for the first nine months slumped 9 percent year on year to CNY5.4 trillion (USD738 billion). Revenue for the period stood at CNY96.4 trillion (USD13.1 trillion), the same as last year.

The prices of manufactured goods picked up as demand recovered, boosting revenue, said Yu Weining, statistician at the NBS' Department of Industrial Statistics. The revenue of industrial enterprises above a designated size climbed 0.3 percent in the third quarter year on year after falling for two consecutive quarters, driving up profits, Yu added.

Industrial profits are expected to continue to improve, said Wu Chaoming, deputy director at the Chasing International Economic Institute. The producer price index, which is a gauge of factory profitability, is declining at a slower pace, and the drag effect of prices on industrial profits has weakened. However, the PPI is expected to continue to slide this year, so its support for industrial profits remains limited, he added.

The raw materials manufacturing industry reported a 60.8 percent jump in profits in the three months ended Sept. 30 from the same period a year ago, after sliding in the second quarter, thanks to last year’s low base line, an increase in demand and an uptick in prices. This sector made the biggest contribution to the country’s industrial profits.

Profits from the consumer goods manufacturing industry rebounded 11.8 percent over the period, after also tumbling in the second quarter, thanks to the sustained economic recovery, supportive policies and the recovery of consumer demand.

Editors: Dou Shicong, Kim Taylor