China Posts 5.5 Percent Drop in October Industrial Profits
The downturn—the steepest monthly drop since June—erased the robust double-digit gains recorded during August and September, according to figures published Thursday by the National Bureau of Statistics.
For the January-through-October period, industrial profits expanded just 1.1% year-over-year, a significant deceleration from the 3.2% increase seen through September, the data revealed.
Sector performance varied widely during the first ten months. Manufacturing profits climbed 7.7%, while utilities—encompassing fuel, electricity, heating, and water providers—posted 9.5% earnings growth. The mining sector, however, recorded a devastating 27.8% profit plunge.
Automotive manufacturers demonstrated resilience, with profits advancing 4.4% through October, up from 3.4% growth recorded in the nine-month period.
Ownership structures showed divergent trajectories: foreign-invested industrial enterprises, including ventures backed by Hong Kong, Macau, and Taiwan capital, achieved 3.5% profit growth. Private firms registered 1.9% gains, while state-owned enterprises reported flat earnings.
Bilateral tensions between Beijing and Washington intensified sharply in October amid export restrictions, with US President Donald Trump threatening to impose an additional 100% levy on Chinese imports before the world's two largest economies brokered a deal in South Korea at month's end.
China's broader economic picture continues deteriorating. Third-quarter GDP expansion slowed to just 4.8%, with fresh indicators suggesting further momentum loss entering the final quarter.
October retail sales rose merely 2.9%—the weakest expansion in over a year and the fifth straight month of deceleration. Fixed-asset investment through October contracted 1.7%, hitting the lowest point since the pandemic-ravaged year of 2020.
Industrial production advanced 4.9% in October, undershooting analyst expectations.
Urban joblessness climbed to 5.1% during the month, maintaining its upward trajectory.
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