New Delhi, July 28 — China’s industrial profits climbed 15.1 per cent in June from the previous year, data from the National Bureau of Statistics (NBS) showed, pointing to a two‑month slowdown as easing energy costs trimmed the price gains that helped drive a rebound earlier this year, a new report has said.
The June deceleration followed a 21.1 per cent gain in May, the first slowdown since November, the report from CNBC said. Industrial profits climbed 18.7 per cent in H1 2026, slightly down from an 18.8 per cent pace recorded for January‑May.
The recovery in corporate earnings this year has been driven by a surge in chip and equipment manufacturing because of artificial intelligence demand.
Consequently, earnings swung from barely positive growth in 2025 to double-digit gains along with the end of nearly three years of factory-gate deflation, the report said.
"The recovering profit has also been helped by a favorable comparison with last year. Earnings fell 3.6 per cent in June last year and declined 2.8 per cent in the first half of 2025," it added.
Factory-gate prices rose 3.6 per cent year‑on‑year in the second quarter, marking the first positive reading since late 2022.
But the reflationary boost showed signs of weakening, as price recovery was largely driven by surging global energy costs, while domestic demand lags, according to experts.
The media house said that investors are looking for cues from the upcoming Communist Party’s Politburo meeting, usually held in late July, where top leaders will review first-half performance and decide the policy direction for the rest of the year.
Beijing may refrain from forceful action due to resilient exports and its focus on curbing excess factory capacity, economists said, forecasting a stronger easing language, with low expectations for a large stimulus package.