Profits of China's major industrial firms increased 3.4 percent year on year in the first five months of the year, according to the National Bureau of Statistics (NBS) on Thursday.

The growth rate narrowed from the 4.3-percent increase registered in the first four months of the year.

However, the growth rate of enterprise profit from January to May was 0.8 percentage point higher than that from January to April, accelerating for two consecutive months.

Industrial firms with an annual main business revenue of at least 20 million yuan ($2.81 million) saw their combined profits reach 2.75 trillion yuan during the January-May period.

Among the 41 industrial categories monitored by the bureau, 32 recorded profit growth, accounting for 78 percent.

The profits of the equipment manufacturing sector continued to increase rapidly in the January-May period, with a growth rate of 11.5 percent year on year, 8.1 percentage points higher than that of overall industries, marking the largest contribution to industrial profit growth this year.

NBS statistician Yu Weining said that overall, the efficiency of industrial enterprises continued to recover from January to May. Going forward, China should promote new industrialization, accelerate the development of new quality productive forces, focus on expanding effective demand, boost the confidence of business entities, and promote a sustained recovery of the industrial economy, Yu added.

(With input from Xinhua)