In the first eight months of 2025, profits for Chinese industrial firms increased by 0.9% year-on-year, reaching CNY 4.69 trillion. This reflects a recovery from a 1.7% decline observed in the first seven months of the year. The resurgence was primarily driven by accelerated growth in the private sector, which saw profits rise by 3.8%, compared to 1.8% growth from January to July. Meanwhile, state-owned enterprises experienced a smaller reduction in profits, with a decrease of 1.7% compared to the previous 7.5% drop.
By industry, profit increases were notable in general manufacturing (5.8%), non-ferrous metals (12.7%), heat production (13.0%), electrical machinery and equipment (11.5%), computers and communications (7.2%), agriculture (11.8%), and special equipment (6.9%). However, certain sectors experienced declines, including the automotive industry (-0.3%), non-metallic minerals (-2.2%), chemicals (-5.5%), textiles (-7.0%), oil and gas (-12.4%), and coal mining (-53.6%).
Focusing on August alone, profits soared by 20.4% compared to the same month the previous year. This marked a significant rebound from a 1.5% decrease in July, representing the first instance of monthly growth after four months of contraction.
