Overview

• Official data show industrial profits fell 9.1% in May year on year, ending a two-month growth streak.
• Cumulative earnings at major factories dropped 1.1% in the first five months, reversing a 1.4% gain through April.
• NBS statistician Yu Weining cited weak domestic demand, falling product prices and US tariffs on goods like electric vehicles and semiconductors as drivers of the decline.
• High-tech sectors including aerospace, aviation and marine industries saw a combined 56% rise in profits during May.
• Analysts expect Beijing to unveil targeted fiscal and monetary support in the second half of 2025 to bolster industrial activity.