China data, July Industrial profit -1.5% y/y
- prior -4.3%
- industrial profits fell for the third consecutive month
YTD (ie first 7 months of 2025) -1.7% y/y
- prior -1.8%
Analysts say the drop reflects:
- ongoing deflationary pressures (factory-gate prices, the PPI, have fallen for 34 straight months) weighing on consumer spending and corporate profits
- fierce competition among producers
- domestic demand weakening still
- government efforts to curb excess competition have yet to improve margin
As for the external sector, new export orders fell at the fastest rate in three months.
