China Industrial Profits Drop 1.7% YoY in Jan-July

Profits at China’s industrial firms fell 1.7% year-on-year to CNY 4.02 trillion in the first seven months of 2025, after a 1.8% decline in the first half of the year. The decline highlighted subdued business and consumer confidence that continues to weigh on demand and the broader economy. Profits at state-owned enterprises extended their decrease (-7.5% vs -7.6% in January–June), while growth in the private sector was little changed (1.8% vs 1.7%). By sector, profits fell in coal mining (-55.2%), oil and gas (-12.6%), chemicals (-8.0%), textiles (-6.5%), and non-metallic minerals (-5.6%). Meanwhile, gains were seen in agriculture (14.5%), electrical machinery and equipment (11.7%), non-ferrous metals (6.9%), computers and communications (6.7%), general manufacturing (6.4%), heat production (6.3%), special equipment (3.2%), and autos (0.9%). In July alone, profits slipped 1.5% from a year earlier, improving from a 4.3% drop in June but marking the third consecutive monthly fall.