China’s industrial profits jump 24.7% in April, fastest gain in two years despite headwinds
Workers work on a production line for automotive chips at a workshop on May 22, 2026 in Huzhou, Zhejiang Province in China.
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BEIJING – China’s industrial profits rose 24.7% in April from a year earlier, according to official data released on Wednesday, despite broader signs of an economic slowdown.
The increase marked the fastest growth since November 2023, according to financial data provider Wind Information, and accelerated from a 15.8% increase in March.
In the first four months of the year, industrial profits increased by 18.2%, up from 15.5% growth in the first quarter. Manufacturing of computer and electronic equipment, the largest sector by profit, saw earnings more than double from a year ago, although the pace slowed slightly in April from March year-over-year.
Among the ten largest sectors by profit, the oil and gas drilling industry posted an 8.1% increase in profits in the first four months of the year, reversing a 1.4% decline in the first quarter.
Higher crude prices helped lift the fuel processing industry’s profit to 40.42 billion yuan ($5.96 billion) in the January-April period, nearly double the 22.94 billion yuan recorded since March.
Automakers’ profits fell 16.8% in the same period from last year, improving from a 17.7% decline in the first quarter.
Beijing’s efforts to deal with excessive competition in automobiles and other sectors are beginning to bear fruit, EU Chamber of Commerce of China President Jens Eskelund told reporters on Tuesday, citing a survey of members earlier this year. But he warned that it will take another year or two to confirm the trend.
A five-fold increase in profits in the mining and related sectors boosted overall industrial profit growth, while smelting and rolling turned into a profit from April, compared with a loss in the first quarter.
However, the profit of furniture manufacturing fell to 54.4% in the first four months of the year, worse than the 44.9% recorded since March.
“China’s industrial profit growth increased sharply in April, driven mainly by rising producer prices amid a global energy shock,” said Hao Zhou, head of research and economist at Guotai Junan International.
“However, profit growth appears uneven and may be fragile. Profit gains are concentrated in upstream and high-tech sectors, while many other industries continue to struggle,” he said in the letter.
China reported slower economic growth in April, with a 4.1% increase in industrial output and a 0.2% increase in retail sales from a year ago. Investment in fixed assets fell in the first four months of the year as mortgage withdrawals increased.
Exports remained strong, rising 14.1% in April from a year ago in US dollars. Imports rose by 25.3%, data released in early May showed.
The producer price index in April jumped 2.8% from last year, the most since July 2022.
