[News] China’s Industrial Profits Continue to Rise in July, But Domestic Demand Remains Weak

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China’s industrial profits continued to rise in July, as reported on August 27. According to  the National Bureau of Statistics, the cumulative year-on-year growth rate of profits for large-scale industrial enterprises reached 3.6% from January to July, an increase of 0.1% compared to the January to June period. The year-on-year growth rate for July alone was 4.1%, up 0.5 percentage points from June, marking the second consecutive month of accelerated growth.

This recovery was primarily driven by the high-tech manufacturing sector, which saw a profit growth rate of 12.8%, contributing over 60% to the overall growth. This reflects the Chinese government’s support for high-tech, high-efficiency, and high-quality products.

However, in a recent statement, Yu Wei Ning, an industrial statistician at the National Bureau of Statistics, pointed out that domestic consumer demand remains weak, which has compressed the profits of some industrial enterprises. This situation is also reflected in the July Producer Price Index (PPI), which declined by 0.8%, marking the 22nd consecutive month of negative growth in PPI.