{"id":826136,"date":"2026-07-27T03:23:09","date_gmt":"2026-07-27T03:23:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/826136\/"},"modified":"2026-07-27T03:23:09","modified_gmt":"2026-07-27T03:23:09","slug":"chinas-industrial-profit-growth-slows-again-in-june-as-oil-falls","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/826136\/","title":{"rendered":"China’s industrial profit growth slows again in June as oil falls"},"content":{"rendered":"

LIUZHOU, CHINA – JULY 25: Robotic arms assemble auto parts at the workshop of Guangxi Liuzhou Zhuotong Auto Parts Co., Ltd. on July 25, 2026 in Liuzhou, Guangxi Zhuang Autonomous Region of China.<\/p>\n

He Huawen | Visual China Group | Getty Images<\/p>\n

China’s industrial profits rose 15.1% in June from a year earlier, according to data released Monday by the National Bureau of Statistics, slowing for a second straight month as easing energy prices took the edge off the price gains that had driven this year’s rebound.<\/p>\n

The June figure extended a two-month deceleration, after May’s 21.1% gain<\/a> marked the first slowdown since November. <\/p>\n

For the first half of this year, profits climbed 18.7%, slowing from the 18.8% pace recorded in the January-May period<\/a>. <\/p>\n

Industrial corporate earnings have staged a notable turnaround this year, swinging from barely positive growth in 2025 to double-digit gains, as an artificial intelligence-fueled boom in chip and equipment manufacturing coincided with the end of nearly three years of factory-gate deflation. <\/p>\n

The recovering profit has also been helped by a favorable comparison with last year. Earnings fell 3.6% in June<\/a> last year and declined 2.8% in the first half of 2025. <\/p>\n

Factory-gate prices also rose 3.6% year on year<\/a> in the second quarter, the first positive reading<\/a> since late 2022. <\/p>\n

That reflation boost appears wobbly, as much of the price recovery was driven by surging global energy costs, while domestic demand lags, economists say.<\/p>\n

Producer prices dipped 0.3% month-on-month<\/a> in June, the first decline since July 2025, according to LSEG data, as normalizing tanker flows through the Strait of Hormuz pulled oil, refined-fuel, and petrochemical prices lower. <\/p>\n

Investors will now turn to the Communist Party’s Politburo meeting, traditionally held in late July, where top leaders will review first-half performance and set policy direction for the rest of the year. <\/p>\n

Economists anticipate stronger easing language after the second-quarter slowdown, though expectations for a large stimulus package remain low, as Beijing refrains from more forceful action given resilient exports and its focus on curbing excess factory capacity.<\/p>\n

“The Politburo is likely to make policy support mildly more urgent, prioritizing faster fiscal rollout,” said Robin Xing, chief China economist at Morgan Stanley, pegging their baseline as a “gradual policy ramp-up rather than a one-off stimulus push.” <\/p>\n

“Growth should stay resilient thanks to exports, even as domestic demand lags,” Xing said, citing the AI-driven investment cycle \u2014 in which China is a key hardware supplier \u2014 and a broader Asian industrial capex super-cycle that is now unfolding. <\/p>\n

Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"LIUZHOU, CHINA – JULY 25: Robotic arms assemble auto parts at the workshop of Guangxi Liuzhou Zhuotong Auto…\n","protected":false},"author":2,"featured_media":826137,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[287204,367127,9073,64,63,99,174,512,164],"class_list":["post-826136","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-lco26u","tag-lco26z","tag-asia-economy","tag-au","tag-australia","tag-business","tag-business-news","tag-china","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/826136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=826136"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/826136\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/826137"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=826136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=826136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=826136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}