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China's industrial profits recover in June; logistics costs drop

30 Jul '25

1 min read

China's industrial profits recover in June; logistics costs drop

Pic: Adobe Stock

Insights

In H1 2025, profits of China's major industrial firms fell 1.8 per cent YoY to 3.44 trillion yuan, though June showed recovery with manufacturing profits rising 1.4 per cent.
Key sectors like automotive and high-tech industries led the rebound.
Meanwhile, logistics efficiency improved, with social logistics costs dropping to 14 per cent of GDP.

China’s major industrial enterprises recorded a 1.8 per cent year-over-year (YoY) decline in profits in the first half of 2025, totalling 3.44 trillion yuan, according to the National Bureau of Statistics (NBS). Despite the fall, June data revealed signs of recovery, with the monthly profit decline narrowing to 4.3 per cent—4.8 percentage points (pps) less than in May.

The manufacturing sector showed marked improvement, posting a 1.4 per cent profit growth in June. Equipment manufacturing and high-tech industries led the rebound. Industries aligned with China’s industrial upgrade initiatives also performed well.

Meanwhile, China's logistics sector demonstrated enhanced efficiency in the first half of 2025, as per data released by the National Development and Reform Commission (NDRC).

The ratio of social logistics cost to gross domestic product (GDP)—a key indicator of cost efficiency—stood at 14 per cent, reflecting a 0.1 percentage point decline from the first quarter and a 0.2 percentage point drop year-on-year. The NDRC noted that this decline indicates positive outcomes in efforts to reduce logistics costs across society.

Fibre2Fashion News Desk (SG)

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