China’s industrial profits grow at slowest pace of 2026

China’s industrial profit growth just hit the brakes, and the timing is less than ideal for anyone betting on a smooth recovery in the world’s second-largest economy. June 2026 industrial profits rose 15.1% year-over-year, according to data released by the National Bureau of Statistics on July 27. That sounds healthy in isolation. But it’s a meaningful step down from May’s 21.1% and a steep fall from April’s 24.7%, making it the slowest monthly growth rate of the year. The numbers tell a familiar story The deceleration dragged first-half industrial profit growth down to 18.7%, slipping just below the 18.8% figure recorded through the end of May. The NBS data covers firms with annual revenues exceeding 20 million yuan, roughly $2.95 million. NBS statistician Yu Weining pointed to weak demand and cash flow pressures as key challenges. Auto manufacturing took a particularly ugly hit, with profits falling 19.5% in the first half of 2026. That’s a sector China has been aggressively trying to dominate globally, especially in electric vehicles. A tale of two economies On the strong side: exports and high-tech manufacturing, particularly in electronics and AI-related fields, continue to sh...