BEIJING, Oct 27 Reuters Profits at China39;s industrial firms extended gains for a second month in September, adding to signs of a stabilising economy as the authorities launched a burst of supportive policy measures.

The 11.9 yearonyear rise came on the back of a surprise 17.2 gain in August, and follows strongerthanexpected industrial and consumption activity over September.

For the first nine months, profits slid 9 from a year earlier, narrowing from a 11.7 decline in the first eight months, data from the National Bureau of Statistics NBS showed on Friday.

Industrial profits recovered quarter by quarter and swung to a 7.7 growth in the JulySeptember period from declines over the previous two quarters, NBS statistician Yu Weining said in an accompanying statement.

The September number reflects an overall improvement in domestic industrial sector operations and a continued recovery in market demand, said Zhou Maohua, an analyst at China Everbright Bank, adding the slowdown in yearonyear growth was due to a high base last year.

A fall in producer prices last month indicated that some industrial firms were still cutting prices to promote sales, putting a drag on overall industrial revenues and profits, Zhou said.

The improvement in industrial profits is expected to sustain in the coming months, partly due to the lag effect in domestic macro pumppriming, he added.

China39;s blue chip CSI300 Index gained 0.6 after opening lower in the morning session.

A run of recent…