{
    "success": true,
    "data": {
        "id": 1883241,
        "msgid": "chinas-industrial-profit-growth-slows-as-energy-price-boost-fades-1785127905",
        "date": "2026-07-27 11:25:00",
        "title": "China's Industrial Profit Growth Slows as Energy Price Boost Fades",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "China's industrial profit growth decelerated in June, marking a second consecutive month of slowing momentum as falling energy prices reduced support for the sector. While profits still rose 15.1% year-on-year, economists warn that weak domestic demand and normalising global energy costs are sapping the recovery's strength. Markets are now awaiting signals from a key Politburo meeting for further policy direction.",
        "content": "<p>China\u2019s industrial profit growth lost momentum again in June, slowing\nfor a second straight month as falling energy prices reduced the boost\nto sector revenues. According to data from the National Bureau of\nStatistics (NBS), profits at Chinese industrial firms rose 15.1% in June\ncompared to the same period last year. This was lower than the 21.1%\ngrowth recorded in May, which had already marked the first deceleration\nsince November of the previous year. Cumulatively, industrial profits in\nthe first half of 2026 increased by 18.7% compared to the same period a\nyear earlier, slightly below the 18.8% growth recorded in the\nJanuary-to-May period. Despite the slowdown, China\u2019s industrial\nperformance this year still shows a significant recovery. After\nrecording only modest growth in 2025, corporate profits have returned to\ndouble-digit growth thanks to a surge in investment in the artificial\nintelligence (AI) sector, particularly in the semiconductor and\nequipment manufacturing industries. The recovery has also been supported\nby the end of nearly three years of producer price deflation. Last year,\nindustrial profits actually fell 3.6% in June and contracted 2.8% in the\nfirst half of 2025, meaning a low comparison base also helped this\nyear\u2019s increase. Producer prices also rose 3.6% year-on-year in the\nsecond quarter of 2026, the first increase since late 2022. However,\neconomists believe this momentum is starting to weaken. The earlier\nprice recovery was largely driven by a surge in global energy prices,\nwhile China\u2019s domestic demand remains insufficient to sustain growth.\nLSEG data showed producer prices fell 0.3% month-on-month in June, the\nfirst decline since July 2025. This weakening was triggered by the\nnormalisation of shipping traffic through the Strait of Hormuz, which\npressured prices for crude oil, refined fuels, and petrochemical\nproducts. Market participants are now awaiting the outcome of the\nChinese Communist Party Politburo meeting, typically held in late July.\nAt this meeting, Chinese leaders will evaluate first-half economic\nperformance and set the policy direction for the remainder of the year.\nA number of economists expect Beijing to signal stronger policy easing\nfollowing the second-quarter economic slowdown, though the chances of a\nlarge stimulus package are considered slim. The Chinese government is\nexpected to remain cautious as exports remain fairly robust, and Beijing\nis still trying to reduce excess production capacity in the\nmanufacturing sector. Morgan Stanley\u2019s Chief China Economist, Robin\nXing, said policy support is likely to focus on accelerating fiscal\nspending rather than massive stimulus. \u2018We expect a gradual increase in\npolicy support, not a big-bang stimulus in one go,\u2019 Xing said. He added\nthat China\u2019s economic growth is expected to remain fairly resilient\nthanks to strong exports, even though domestic demand is still weak.\nAccording to him, the AI-driven investment cycle, where China is a major\nhardware supplier, along with rising industrial investment in Asia, will\ncontinue to underpin the country\u2019s economic growth.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/chinas-industrial-profit-growth-slows-as-energy-price-boost-fades-1785127905",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}