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China's Industrial Profit Growth Halves in August Amid Weak Demand
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CNBC TV18•28-09-2026, 09:19
China's Industrial Profit Growth Halves in August Amid Weak Demand
- •China's industrial profit growth slowed sharply to 4.2% in August, down from 11.2% in July, due to weak domestic demand and excess capacity.
- •Growth for the first eight months of the year also moderated to 15.7% from 17.6% in the January-July period.
- •The slowdown highlights an uneven recovery, with technology and raw-material sectors seeing gains, while other businesses face pressure from weak consumption.
- •Profits in the computer, communication, and electronic equipment manufacturing sector surged 110% in the first eight months, contributing significantly to overall growth.
- •Beijing is implementing measures to address industrial overcapacity and price competition, including regulatory warnings and a three-year action plan to phase out inefficient capacity.
Key Questions Answered
China's industrial profit growth slowed to 4.2% in August due to weak domestic demand and excess capacity weighing on firms, alongside a high comparison base from the previous year.
Profits in the computer, communication, and other electronic equipment manufacturing sector jumped 110% in the first eight months, contributing close to two-thirds of overall industrial profit growth.
Beijing plans to issue regulatory warnings in sectors facing rampant price competition, conduct cost investigations, and roll out a three-year action plan by June to phase out inefficient capacity in nine industries like steel and cement by 2028.
