China’s Industrial Profits Surge 21.6% in September Amid Sectoral Divergence
China's industrial sector delivered its strongest monthly performance since November 2023, with profits soaring 21.6% in September. This marks an acceleration from August's 20.4% growth, signaling a sustained recovery for manufacturers long plagued by deflationary pressures and weak global demand.
The nine-month cumulative picture shows improving momentum—industrial profits grew 3.2% through September, up sharply from the 0.9% pace recorded through August. Yet deflation remains entrenched, with consumer prices falling 0.3% and producer prices dropping 2.3% last month.
High-tech manufacturing emerged as the standout performer, posting a 26.8% profit surge in September alone. Traditional manufacturing and utilities also posted solid gains of 9.9% and 10.3% respectively over the nine-month period. However, the mining sector's 29.3% profit decline highlights ongoing commodity market weakness.
The ownership divide tells another story: private enterprises led with 5.1% profit growth, outpacing foreign firms' 4.9% gain while state-owned enterprises slipped 0.3%.
