China industrial profit growth slows again in June as retreating oil prices sap earnings lift

📰 source: cnbc_topnews · 💼 business

china's industrial profit growth slowed again in june, rising 15.1% from a year earlier — down from may's 21.1% gain and the second consecutive deceleration. for the first half, profits climbed 18.7%, barely easing from the 18.8% pace through may. the rebound from last year's declines has been fueled by a recovery in factory-gate prices, which rose 3.6% in the second quarter, the first positive reading since 2022. but that price tailwind is fading as oil costs retreat and domestic demand lags. producer prices dipped 0.3% month-on-month in june, dragged down by normalizing tanker flows through the strait of hormuz. all eyes now turn to the politburo meeting later this month, where top leaders will review first-half performance and set policy. economists like robin xing at morgan stanley expect a gradual policy ramp-up rather than a big stimulus, citing resilient exports and beijing's focus on curbing overcapacity.

why it matters: china's industrial profit slowdown signals fading energy tailwind, with policy response key to near-term growth.

source: cnbc_topnews
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