China’s industrial profits continued to grow at a double-digit pace in May, although growth slowed from the previous month, Reuters reported on Saturday, as strong factory output and exports continued to offset weak domestic demand.
Profits at major industrial firms rose 21.1% year over year in May, easing from April’s 24.7% increase, according to data from the National Bureau of Statistics.
For the first five months of the year, industrial profits increased 18.8% from a year earlier, slightly faster than the 18.2% growth recorded in the January-April period.
The figures suggest China’s manufacturing sector continues to benefit from export demand despite persistent weakness in the domestic economy, which remains under pressure from the prolonged property downturn and subdued consumer spending.
Performance varied widely across industries. Manufacturers of computers, communications equipment and electronic products posted a 103.9% jump in profits during the January-May period, supported by robust global demand for AI-related technology.
By contrast, profits at China’s auto manufacturers fell 19.8% despite strong vehicle exports, highlighting ongoing pricing pressure and intense competition within the domestic market.
Companies also face growing uncertainty from geopolitical tensions, including the conflict involving Iran, which could weigh on global trade and supply chains in the coming months.
Analysts expect Beijing to introduce additional targeted measures to support corporate profitability as authorities continue efforts to address excess industrial capacity and improve conditions across weaker sectors.
China’s industrial profit data covers companies with annual revenue of at least 20 million yuan ($2.95 million) from their core operations.
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