China's Industrial Profit Growth Slows Sharply in Jan-Nov 2025 Amid Weak Demand and Rising Costs

Profits of China's industrial enterprises grew by just 0.1% year-on-year in the period from January to November 2025, totaling around 6.63 trillion yuan, according to official data. This represents a notable slowdown from the 1.9% growth rate seen over the first ten months of the year. Despite this deceleration, the latest figure marks the fourth straight monthly rise since August, pointing to a continuing but weak recovery amid persistent declines in demand and ongoing cost pressures.

Performance varied by ownership: profits at state-owned enterprises dropped 1.6% after previously holding steady, private firms saw a slight 0.1% decrease compared to earlier 0.9% growth, and foreign-invested companies - including those backed by Hong Kong, Macau, and Taiwan - posted weaker profit growth of 2.4% versus 3.5% previously.

By sector, technology and advanced manufacturing led the gains: computers and communications profits rose 15.0%, utilities 11.8%, nonferrous metal smelting 11.1%, automotive 7.5%, agriculture and general manufacturing 4.8% each, special equipment 4.6%, and electrical machinery 4.2%. In contrast, heavy losses hit coal mining (down 47.3%), oil and gas (down 13.6%), textiles (down 8.2%), and chemicals (down 6.9%), though fuel refining saw losses narrow compared to earlier periods.

On a monthly basis, industrial profits in November dropped 13.1% year-on-year, steeper than October's 5.5% decline, highlighting growing economic headwinds as year-end approached.

EcoPulse24 analysis: The data reflect dual challenges for Chinese industry - slowing domestic and global demand alongside ongoing cost and margin pressures - despite resilience in technology, energy, and infrastructure-linked sectors. The outlook hinges on the effectiveness of government policies to stimulate demand and improve the business environment in 2026.