Growth in China’s industrial profits slowed for a third straight month to the weakest pace this year, as a cooling economy weighed on production and price gains. Industrial profit growth eased again in July to 11.2%, leaving earnings up 17.6% in the first seven months into the year, official data showed Thursday. The cumulative expansion fell short of the 18.1% increase forecast by Bloomberg Economics.

The data reflects ongoing challenges in China’s manufacturing sector amid subdued demand and deflationary pressures. Analysts note that while profits remain positive, the deceleration signals broader economic headwinds. The slowdown adds to concerns about the durability of China’s post-pandemic recovery.

Policymakers may face increasing pressure to stimulate industrial activity. The July figure marks the lowest monthly growth rate recorded in 2026.