China's industrial profits in April grew at the fastest pace since November 2023, despite financial pressures stemming from softening domestic demand and rising component costs exacerbated by the Middle East crisis.
The latest data adds to signs of an uneven recovery, with the economy largely losing momentum at the start of the second quarter. While exports have remained a rare bright spot, most other indicators have undershot expectations, leaving firms increasingly reliant on overseas markets for growth.
The shift comes as companies navigate persistent domestic headwinds and heightened global uncertainty, with U.S. President Donald Trump's visit to China earlier this month delivering only modest commercial and trade commitments and an agreement to build a "constructive" relationship.
Profits at China's industrial firms rose 24.7% last month from a year earlier, sharply up from a 15.8% jump in March, data from the National Bureau of Statistics showed on Wednesday.
For the January-April period, industrial profits climbed 18.2%, versus a 15.5% increase recorded in the first quarter.
"Profit divergence is pronounced," said Tianchen Xu, senior economist at the Economist Intelligence Unit.
Source : reuters