Data released by the National Bureau of Statistics (NBS) showed that China's industrial profits saw their steepest monthly decline of the year in September, dropping by 27.1% compared to the same period last year, after a 17.8% drop in August. Cumulatively, profits fell 3.5% over the first nine months of the year, reversing a 0.5% gain seen between January and August.
The drop comes as China's economy experienced its weakest growth since early 2023 last quarter, partially impacted by a struggling property market. Weak export growth, subdued loan demand, and deflationary pressures have raised concerns over the country’s economic recovery, leading policymakers to consider additional fiscal measures to boost growth.
The auto industry has been particularly affected, with August profits plunging 21.4% year-on-year to 30.5 billion yuan. In response, China’s finance minister has pledged increased fiscal stimulus, following the central bank’s recent aggressive monetary support moves. However, specific funding details have not been disclosed.
State-owned companies reported a 6.5% decline in profits from January to September, while foreign firms saw a modest 1.5% increase. Private sector profits dipped by 0.6%.