China Industrial Profits Fall 1.5% July Third Consecutive Month

China's industrial profits fell for the third consecutive month in July 2025, declining 1.5% year-over-year, but this represented the slowest pace of decline since profits began shrinking in May. The National Bureau of Statistics data showed that profits for the January-July period dropped 1.7%, a slight improvement from the 1.8% decline recorded in the first half of the year. High-tech manufacturers experienced a significant rebound with profits rising 18.9%, while medium and small-sized enterprises also saw modest profit increases. Despite government efforts to stimulate the economy through infrastructure spending, consumer subsidies, and measures to curb price wars, weak domestic demand, factory-gate deflation, and a prolonged housing downturn have continued to weigh on industrial earnings. State-owned enterprises reported a 7.5% profit decline in the first seven months, whereas private and foreign firms saw profits increase by 1.8%. Overall, the data highlights ongoing challenges from deflationary pressures and competitive market conditions amid Beijing's attempts to bolster economic recovery.