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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.
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Reuters broke the news in London, United Kingdom on Monday, September 28, 2026.
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