China industrial profits climb 18.7% in first half, easing 0.1 point

China's industrial enterprises above designated size posted an 18.7% year-on-year profit increase in the first half of 2026, a marginal deceleration from the 18.8% pace through May, the National Bureau of Statistics said.

China's industrial profit growth eased to 18.7% in the January-June period from 18.8% in the first five months, the National Bureau of Statistics said, as the manufacturing sector's recovery showed signs of steadying after a strong start to the year.

The 0.1 percentage point deceleration is the smallest sequential slowdown in recent readings, according to NBS data. The reading remains firmly in double-digit territory, indicating that the industrial recovery retains momentum even as it moderates.

The data covers industrial enterprises with annual revenue exceeding 20 million yuan, a category that accounts for the majority of China's manufacturing output. The NBS does not disclose a consensus forecast for the cumulative profit figure, making the prior period the primary benchmark for comparison. In March, industrial profits jumped 15.8% from a year earlier, fueled by the artificial intelligence and semiconductor boom, according to earlier NBS data.

The sustained double-digit profit growth supports the broader narrative of a manufacturing-led recovery in the world's second-largest economy, even as the property sector remains under pressure and consumer confidence recovers only gradually. The resilience in industrial earnings reduces the urgency for the People's Bank of China to deliver additional stimulus. The next major data point for assessing China's industrial trajectory will be the July industrial production and fixed-asset investment figures, with release dates to be confirmed by the NBS.

This article is for informational purposes only and does not constitute investment advice.