China's Industrial Profit Growth Slows to 11.2% in July as Demand Weakens
Updated
Updated · CNBC · Aug 27
China's Industrial Profit Growth Slows to 11.2% in July as Demand Weakens
3 articles · Updated · CNBC · Aug 27
Summary
July industrial profits rose 11.2% from a year earlier—the weakest pace of 2026—while January-July growth eased to 17.6% from 18.7% in the first half.
Soft domestic demand and a broader slowdown hit manufacturers, with falling property and infrastructure investment worsening profits in steel and cement and furniture losses deepening to 58.2%.
AI-linked and raw-material sectors still cushioned the slowdown: integrated-circuit profits climbed 18.5%, optical-fiber profits rose more than fivefold, and raw-material manufacturers posted 55.2% growth.
Price support is fading as factory-gate inflation slowed to 3.5% in July, while second-quarter GDP growth was the weakest in more than three years and July exports, retail sales and electricity output all softened.
Economists expect Beijing to speed targeted fiscal support and possibly add easing, but see only near-term stabilization as the property slump, weak confidence and subdued private investment constrain recovery.