China's industrial profit growth slows to 4.2%, the slowest this year
China's National Bureau of Statistics said Monday in Beijing that industrial profits rose 4.2% in August, the slowest gain this year, while electronics accounted for 62% of the increase through August.
Key takeaways
Profits at China's large industrial firms rose 4.2% in August from a year earlier, slowing from 11.2% in July, the National Bureau of Statistics said Monday in Beijing. It was the slowest monthly gain this year, extending a slowdown now in its fourth month.
For the first eight months, profits rose 15.7% to 5.27 trillion yuan, easing from 17.6% through July. Electronics profits rose 110% and accounted for 62% of the increase in industrial profits, which is 9.7 percentage points of the 15.7% rise.
Yu Weining, chief statistician of the bureau's industrial department, linked the jump to artificial intelligence. He said electric vehicles, connected devices and computing centers were driving demand for chips.
Processing of metals other than steel rose 82.9% over those eight months. Yu said higher world prices for crude oil and industrial metals helped those producers.
Steel went the other way. Profits in steelmaking fell 62.4% over the eight months, and profits at makers of cement, glass and other building materials fell 46.7%. Automakers' profits fell 16%, even as Yu cited electric vehicles as a source of that chip demand.
Other August figures, released earlier this month, showed industrial output up 5.2% from a year earlier, against a 0.4% rise in retail sales. Investment in property development fell 19.9% in the first eight months. Yu called for more effective policy support to expand demand at home.
Last August was already in the forecast
Yu said August slowed because it was set against a strong month. Profits jumped 20.4% in August 2025, their first increase in four months.
Bloomberg Economics had expected 8% for August, measured against the same 20.4% jump. August's 4.2% still missed that forecast.
Frequently asked
Why did industrial profit growth slow in August?
Yu said August slowed because it was set against a strong month, when profits jumped 20.4% in August 2025.
What drove the rise in industrial profits this year?
Electronics profits rose 110% and accounted for 62% of the increase through August, which Yu linked to chip demand from electric vehicles, connected devices and computing centers.
Which industries saw profits fall?
Profits in steelmaking fell 62.4% over the eight months, profits at makers of cement, glass and other building materials fell 46.7%, and automakers' profits fell 16%.
Did August's result match forecasts?
Bloomberg Economics had expected 8% for August, and the 4.2% gain missed that forecast.
