China industrial profits rose 14.4% in September 2026 from a year earlier, their fastest growth since June, as technology-related manufacturing helped offset weak domestic demand.

Key Takeaways

  • Profits at large industrial firms increased 15.5% in the first nine months of 2026.
  • AI-related demand supported earnings at semiconductor equipment and optical fiber manufacturers.
  • Consumer-facing industries remained under pressure as household spending stayed subdued.

China industrial profits led by technology

The National Bureau of Statistics released the figures on October 27. Chief statistician Yu Weining attributed much of the earnings growth to electronics and advanced-technology manufacturing.

In the first nine months of 2026, profits at electronic special materials manufacturers more than tripled, while those at semiconductor device equipment makers rose 51.7%. Yu said demand for AI computing power and storage remained strong.

The expansion of AI computing and data centers also lifted profits at optical fiber manufacturers to more than six times their year-earlier level. Cable makers’ profits more than doubled over the same period, Yu said.

Consumer demand remains weak

The strength in high-tech manufacturing contrasted with weaker earnings growth in consumer-related industries such as clothing, autos and furniture. Higher commodity prices also benefited miners and raw-material suppliers, while raising costs for manufacturers further down the supply chain.

Shena Yue, senior economist at Oxford Economics, said high-tech manufacturing investment and electronics capacity utilization remained resilient, but overall investment and industrial utilization were subdued. She said the property downturn continued to weigh on household purchases of homes and related durable goods.

Retail sales rose 1.1% year over year in September. China’s economy grew 4.5% in the third quarter, bringing growth for the first nine months to 4.6%, within the government’s full-year target range of 4.5% to 5%.

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