China factory profits grow slowest in 2026

Chinese official data show that profits of industrial companies in China experienced their slowest growth rate since the beginning of the year, rising by 4.2% in August. This reflects increasing pressures on the manufacturing sector due to weak consumer demand and rising energy costs. After a strong recovery earlier in the year, profit growth has tapered off from its peak, which reached 24.7% in April, likely due to a gradual slowdown in growth momentum. The technology sector is posting robust growth, especially with a 110% rise in profits from the computer and telecommunications sectors driven by investments in artificial intelligence. Meanwhile, the automotive and apparel industries are facing crises, with declining profits and market disruptions. Experts expect the Chinese government to implement additional stimulus measures to boost demand and support economic growth, especially as challenges persist in the real estate and consumption sectors.

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