BEIJING, Aug. 27 (Xinhua) -- China's major industrial firms saw continued profit recovery in July, with profit declines narrowing further, driven by stable industrial output growth and measures to boost consumption in the world's second-largest economy, official data showed on Wednesday.

Major industrial firms with an annual main business revenue of at least 20 million yuan (about 2.81 million U.S. dollars) saw their combined profits reach 4.02 trillion yuan during the January-July period, down 1.7 percent year on year, per data released by the National Bureau of Statistics (NBS).

The rate of decline during the period narrowed by 0.1 percentage points compared to the first half of 2025, indicating improving profitability, according to NBS statistician Yu Weining.

In July, the profits of major industrial firms declined 1.5 percent compared to a year earlier. However, that decline narrowed 2.8 percentage points from the June figure.

The NBS data also showed that these firms saw operating revenues rise by 2.3 percent year on year in the first seven months of 2025, and by 0.9 percent year on year in July.

Yu noted that this sustained revenue growth has created favorable conditions for the recovery of corporate profits.

In an analysis, Yu said that fast profit growth in the manufacturing and high-tech manufacturing industries has contributed greatly to the recovery of corporate profits among industrial firms.

The data showed that corporate profits in the manufacturing sector increased 6.8 percent in July, accelerating from a rise of 1.4 percent in June. Raw materials manufacturing firms saw their profit surge by 36.9 percent, compared with a decline of 5 percent in June. Among them, steel and oil refining firms turned losses into profits.

Yu said that the country's policies aimed at shoring up consumption and domestic demand yielded significant results in driving profit growth.

Since the beginning of 2025, China has expanded the coverage of its equipment upgrade and consumer goods trade-in program, leading to notable profit improvements in related industries. Boosted by these measures, the specialized equipment manufacturing sector for electronics and electrical machinery saw profits increase by 87.9 percent in July.

Wednesday's data also showed that private industrial enterprises reported a profit increase of 2.6 percent year on year in July, 4.1 percentage points higher than the average level of all major industrial firms.

Looking ahead, Yu emphasized the need to bolster domestic demand and steadfastly develop new quality productive forces for the industrial economy.

Yu stressed the need to maintain policy consistency and stability, strengthen innovation-driven development, promote the transformation and upgrading of traditional industries, and advance the sustained and sound growth of the industrial economy. ■