China industrial profits post steepest drop in 14 months

Published: Monday, December 29, 2025 at 12:28 am

China's Industrial Profits Plunge, Raising Economic Concerns

Beijing, China – China's industrial profits experienced a significant downturn in November, marking the steepest year-on-year decline in 14 months. Data released this week by the National Bureau of Statistics revealed a 13.1% drop in industrial profits compared to the same period last year. This follows a 5.5% decrease in October, representing the second consecutive monthly decline and the weakest performance since September of the previous year.

The cumulative industrial profits for the period from January to November saw a modest increase of 0.1% year-over-year, a slowdown from the 1.9% growth recorded in the January-October period.

Examining specific sectors, mining profits experienced a substantial decline of 27.2% during the January-November period. Within mining, coal mining and ore processing profits fell by 47.3%. Conversely, the manufacturing sector showed some resilience, with profits rising by 5.0%. Utilities, including electricity and water, also saw an increase of 8.4%. Notably, the computer, communications, and other electronic equipment manufacturing sector saw a profit increase of 15.0%, while automobile manufacturing rose by 7.5%.

Despite robust export figures, the overall sluggishness in industrial profits is attributed to weak domestic demand and concerns about deflation. This has prompted calls for further economic stimulus measures. However, the government has not yet announced new stimulus packages, as the current growth target of "around 5%" for this year is considered achievable. Authorities have expressed intentions to boost domestic demand and promote employment in the coming year.

The data is based on enterprises with annual main business revenue exceeding 20 million yuan.

BNN's Perspective:

The sharp decline in industrial profits is a concerning indicator of the challenges facing the Chinese economy. While the government's cautious approach to stimulus is understandable given the current growth targets, the persistent weakness in domestic demand warrants close monitoring. A balanced approach that supports both domestic consumption and export competitiveness will be crucial for maintaining sustainable economic growth.

Keywords: China, industrial profits, economic decline, domestic demand, deflation, manufacturing, mining, stimulus, National Bureau of Statistics, economic growth, exports

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