China: factory profits grow 15.1% in June, the slowest of the year
WHAT HAPPENED
Chinese factory profits grew 15.1% in June compared to June 2025, but it was their slowest advance of the year. In May, they had risen 21.1%. In the first half, they increased 18.7%, to 3.95 trillion yuan.
WHY IT MATTERS
Cheaper oil reduced what factories earn per product. Additionally, profits for car manufacturers fell 19.5% because sales have been declining for nine months. In contrast, electronics and chips nearly doubled their profits due to artificial intelligence.
AND FOR YOUR PORTFOLIO
China buys copper, soybeans, oil, and iron from countries like Mexico and Brazil. If its factories and consumers slow down, those prices and exports may come under pressure. Chips show an exception: artificial intelligence continues to drive part of the industry.
💬 TELL IT LIKE THIS
“The world's factory continues to grow, but its traditional engines — cars, oil, and consumption — are slowing down; chips are the exception.”