China Watch: Chart book series #198: higher industrial profit; weaker consumer sentiment

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China Watch: Chart book series #198: higher industrial profit; weaker consumer sentiment

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China Watch

Chart book series #198: higher industrial

profit; weaker consumer sentiment

Apr industrial profit growth increased 24.7% yoy 04 June 2026

In Apr, industrial profit growth accelerated further to 24.7% yoy, marking the fastest GEM Economics

pace since 2024, while revenue growth also edged up to 5.7% yoy. Sector-wise, profit Asia | China

expansion was primarily driven by selected upstream industries (non-ferrous metals, Benson Wu, CFA

coal, and chemical materials) and downstream segments (computers and electronic China & Korea Economist

equipment), largely reflecting price improvements (Exhibit 1). Notably, there remains Merrill+852 3508Lynch5047(Hong Kong)

limited evidence of inflation pass-through along the supply chain, suggesting underlying benson.wu@bofa.com

demand conditions are still relatively soft. Meanwhile, inventory growth continued to Helen Qiao

pick up in Apr, at 3-year high (Exhibit 12). ChinaMerrill&LynchAsia Economist(Hong Kong)

Auto sales dropped 20% yoy; consumer confidence eased +852helen.qiao@bofa.com3508 3961

In terms of consumption activities, auto sales growth stayed weak and dropped by 13%

yoy in volume during May 25-31 (-20% yoy in May, Exhibit 2). Box office revenue also

Abbreviations

softened sequentially (Exhibit 3). The NBS consumer confidence index saw a notable drop NDRC: National Development and Reform

in Apr (89 vs. 90 in Mar, Exhibit 5), likely due to higher fuel prices. In terms of production Commission

and construction activities, major indicators were still below the previous years’ level, Mtd: month-to-date

including cement shipment ratio as well as rebar consumption (Exhibit 9 & Exhibit 10). On Ytd: Year-to-date