Under the pressure of inflation, the profit growth of instrument and meter industry declined

It is reported that last year's growth in the production and sales of the instrumentation industry entered a historically high area, with annual sales exceeding RMB 500 billion for the first time, and profit growth reaching 46.65%. The annual total profit, monthly profit, and year-on-year increase were all new highs. This year, due to inflationary pressures, the profit growth of the instrumentation industry will decline.

Under the pressure of inflation, the increase in profit growth is mainly due to downstream industries such as iron and steel, petroleum processing and coking, electronics, transportation equipment, electricity, paper, rubber products, and instrumentation. Among them, the profits of thermal power, flat glass, petroleum processing, and tire industries will decline.

According to the survey, the lagging impact of Japan’s earthquake on China’s industry has gradually increased, with industries such as instrumentation, transportation equipment, electrical machinery, and special equipment being the most affected.

Under the dual pressure of import inflation and credit tightening, demand has been affected, and the rise in corporate inventories has accelerated. At the end of March, industrial finished products increased by 23.2% year-on-year, an increase of 11.9 percentage points from the end of last year; while main business revenue increased by 30.6%, a decrease of 1.2 percentage points from the end of last year, and inventory pressure increased significantly.

As inflation stays at a high level for a long period of time, the proportion of raw materials purchased by enterprises at a low price is reduced, and the cost of raw materials rises rapidly, which has a large impact on corporate profits. The increase in profit caused by greater inflationary pressures is mainly attributed to downstream industries such as instrumentation, iron and steel, petroleum processing and coking, electronics, transportation equipment, electric power, paper making, and rubber products.