China industrial profits rise at fastest pace in three months

China’s industrial profits rose 14.4% year over year in September, the fastest pace in three months, while profits for the first nine months of 2026 were up 15.5%, according to official data. Gains were concentrated in mining, electronics and other high-tech industries, buoyed by demand for AI-related equipment and higher commodity and producer prices. Those rising input costs have squeezed some manufacturers, while weak household spending and subdued domestic demand continue to weigh on consumer-oriented businesses. Retail sales grew just 1.1% in September, underscoring the unevenness of the recovery despite 4.5% economic growth in the third quarter.