China Industrial Profits Growth Cools to Slowest in Seven Months as Economic Slowdown Deepens
China's industrial profits growth in July slowed to its weakest pace this year, as soft demand and a broader slowdown in the economy weighed on manufacturers.
TL;DR
- China's industrial profits grew 11.2% in July, the slowest pace this year.
- For the first seven months, profits increased 17.6%, down from the first half's 18.7%.
- The AI boom boosted profits in computing and electronics, contributing significantly to overall gains.
- Raw materials manufacturers saw profits rise 55.2% year-to-date.
- Property and infrastructure slowdown impacted steel and cement industries negatively.
- Consumer-facing industries struggled, with furniture manufacturing profit decline steepening.
- Factory-gate inflation slowed to a three-month low of 3.5% in July.
- China's Q2 economic growth weakened, and July data indicated broad-based loss of momentum.
- Authorities are expected to step up targeted support to stabilize corporate profitability.
- A strong cyclical rebound is unlikely due to property market slump and subdued private investment.