(Yicai) Nov. 27 -- Chinese industrial enterprises significantly narrowed their profit decline last month, driven by policy support that bolstered the equipment and high-tech manufacturing sectors, and showed recovery among raw material and consumer goods producers.

Profits for industrial firms with an annual turnover of at least CNY20 million (USD2.8 million) decreased 10 percent year-over-year in October, according to data released today by the National Bureau of Statistics. This follows a 27.1 percent decline in September.

From January to October, profits totaled CNY5.86 trillion (USD814 billion), representing a 4.3 percent year-over-year decrease.

More than 60 percent of sectors improved their profitability in October, according to Yu Weining, a statistician at the NBS. Emerging sectors like equipment and high-tech manufacturing provided strong support, while the profit declines in raw material and consumer goods manufacturing significantly narrowed.

Manufacturing profits decreased by 22.3 percentage points less compared to September. Equipment manufacturers rebounded, achieving a 4.5 percent year-over-year profit growth and supporting the overall recovery. High-tech manufacturers expanded their profits by 12.9 percent year-over-year, substantially outperforming the average. Notably, producers of wearables and lithium-ion batteries saw dramatic profit increases of 73.3 percent and 39.4 percent, respectively.

Domestic consumer demand is showing signs of recovery, and industrial product exports are growing. In October, raw material producers reduced their profit declines by 27.7 percentage points from the previous month, while consumer goods manufacturers trimmed their declines by 20.4 percentage points.

Wu Chaoming, vice president of the Chasing International Economic Institute, expects corporate profits to continue improving with the implementation of incremental policies. However, Wu cautioned that factors such as base effects and industrial product prices might constrain enterprises' profitability in the fourth quarter.

Editor: Emmi Laine