China’s Factory Profits Plunge 13% in November—Deepest Drop in Over a Year Signals Urgent Stimulus Need
China’s industrial sector hit a rough patch in November as profits cratered 13.1% year-over-year, the steepest decline in more than 12 months, per National Bureau of Statistics data.
Weak Demand Drags Despite Export Strength
Soft domestic consumption overshadowed resilient exports, fueling calls for bolder policy action amid factory-gate deflation and a sputtering recovery. Xu Tianchen from the Economist Intelligence Unit notes Q4 economic cooling but sees hope in “anti-involution” strategies curbing overinvestment.
Year-to-Date Picture and Sector Winners
Cumulative profits for Jan-Nov eked out a meager 0.1% gain, down from 1.9% through October, hammered by coal mining’s 47% nosedive. Bright spots: autos surged 7.5%, and high-tech manufacturing climbed 10%.
Policy Pivot Ahead
Beijing eyes “proactive” fiscal measures in 2026 to ignite consumption, stabilize property, and revive prices—critical as real growth estimates lag official ~5% targets.
Takeaway: China’s $19T economy needs household demand firepower to steady industrial footing amid global volatility.
