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China industrial profits rise 15.7% in January-August
Weak consumer demand and higher energy costs weighed on manufacturers as profits for the first 8 months still rose 15.7%, official data showed.
China's industrial profits grew 4.2% in August from a year earlier, marking the weakest monthly expansion this year as manufacturers grappled with persistent weakness in consumer demand and sustained rises in energy costs.
This result marks the fourth straight month of deceleration from the 24.7% pace set in April, though profits for the first eight months climbed 15.7%, easing from the 17.6% rise seen in the January-July period.
Industrial earnings staged a notable reversal this year, swinging from a barely-positive 0.6% gain for all of 2025 to double-digit growth, driven by an artificial-intelligence-fueled boom in chips and computing equipment.
Retail sales slowed further and the urban investment slump deepened as manufacturing activity contracted for two consecutive months recently, despite output rebounding on the back of exports.
Economists expect Beijing to lean harder on stimulus to stabilize corporate profitability as consolidation accelerates in sectors facing sluggish demand, fierce competition and price wars.