China’s industrial profits grow at slowest pace of 2026

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China’s industrial profits grew 15.1% year-over-year in June 2026, marking the slowest pace of the year. This represents a sharp deceleration from April’s 24.7% and May’s 21.1% growth rates. The automotive sector was particularly hit, with profits falling 19.5% in the first half of 2026. Q2 2026 GDP growth came in at 4.3%, the slowest pace since late 2022. Weak domestic demand and cash flow pressures remain key challenges for the world’s second-largest economy.

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