BEIJING — China's industrial sector delivered a remarkable performance in April, with profits surging by an impressive 24.7% year-on-year. This growth, the fastest recorded since November 2023 according to financial data provider Wind Information, defied broader concerns about the nation's economic momentum, accelerating significantly from a 15.8% rise in March.
For the initial four months of the year, industrial profits climbed 18.2%, an uptick from the 15.5% growth seen in the first quarter. This significant increase was largely propelled by the computing and electronics equipment manufacturing sector, the largest contributor by profit, which saw earnings more than double compared to the previous year, despite a slight moderation in its pace in April on a year-to-date basis.
Employees work on the production line of automotive display chips at a workshop on May 22, 2026 in Huzhou, Zhejiang Province of China.
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Other key sectors also contributed to this robust growth. Among the ten largest sectors by profit, the oil and gas extraction industry reversed an earlier decline, posting an 8.1% profit rise for the January-April period. Similarly, higher crude prices bolstered the petroleum processing industry, nearly doubling its profits to 40.42 billion yuan ($5.96 billion) by April compared to March figures. A fivefold increase in profits from the mining and related sectors further augmented overall industrial growth, while iron smelting and rolling returned to profitability for the year as of April, compared with a loss in the first quarter.
However, the picture wasn't uniformly positive. Automobile manufacturers still faced challenges, with profits falling 16.8% in the same period, though this represented an improvement from the 17.7% decline in the first quarter. Beijing's efforts to curb excessive competition in sectors like automotive are reportedly beginning to show results, according to EU Chamber of Commerce of China President Jens Eskelund, though a clearer trend is expected in a year or two. Meanwhile, furniture manufacturing saw profit declines steepen to 54.4% for the first four months of the year, worse than the 44.9% recorded as of March.
Hao Zhou, head of research and chief economist at Guotai Junan International, noted that "China's industrial profit growth accelerated sharply in April, driven primarily by rising producer prices amid the global energy shock." He added a cautionary note: "However, the improvement in profitability appears uneven and potentially fragile. Profit gains are concentrated in upstream and high-tech sectors, while many other industries continue to struggle."
This industrial boom comes against a backdrop of mixed economic signals. April saw slower overall economic growth, with industrial output increasing by 4.1% and retail sales by a modest 0.2% year-on-year. Fixed asset investment fell for the first four months of the year as the real estate drag steepened. Nevertheless, exports remained robust, climbing 14.1%, and imports surged by 25.3% in April. The producer price index also reflected inflationary pressures, jumping 2.8%—the highest increase since July 2022.
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