‘Fairly clear deceleration’ in last month’s manufacturing profits suggests trade frictions with Washington are having an impact, analyst says
China’s industrial profits fell by more than 9 per cent in May over the same month of 2024, according to data released on Friday, reflecting what analysts said was weak domestic demand for minerals and motor vehicles, coupled with ramifications of the US-China tariff dispute.
The National Bureau of Statistics said profits for industrial companies making more than 20 million yuan a year in revenue dropped in May by 9.1 per cent, year on year.
Industrial profits fell 9.7 per cent in May over April, after seasonal adjustments, following a 4 per cent rise in April versus March, New York-based Goldman Sachs said in a research note on Friday.
And manufacturing profits, part of industry overall, saw a year-on-year increase of 8.6 per cent during the first four months of 2025 before slowing to 5.4 per cent in May, Dutch financial services firm ING calculated.
