China Industrial Profits Rise 14.4% as AI Demand Supports Earnings

China’s industrial profits climbed 14.4% in September from a year earlier, as AI-linked manufacturing demand helped lift earnings while weak household spending kept the recovery uneven.

The increase was the fastest since June and a rebound from August’s 4.2% rise. Profit growth had slowed for four consecutive months before September. The previous month’s figures are covered in TokenPost’s report on August profits.

For January through September, profits were up 15.5% year over year, compared with 15.7% through August. The cumulative growth rate edged lower even as the latest monthly result accelerated. Industrial earnings returned to double-digit growth earlier this year after rising 0.6% in 2025, following three years of declines.

Companies tied to AI equipment, chip production and raw materials have benefited from a global boom in AI demand and higher commodity prices associated with the war in Iran. Mining companies and chipmakers were among the sectors lifted by those conditions. Manufacturers farther down the supply chain faced higher input costs while domestic demand remained weak.

The gap between sectors remained pronounced. High-tech fields such as AI and robotics recorded stronger earnings growth than consumer-facing industries including clothing, autos and furniture. China’s economy grew 4.5% year over year in the third quarter and 4.6% over the first nine months, within the government’s 4.5% to 5% full-year target range. Retail sales rose 1.1% in September, beating forecasts but only slightly improving on August’s weak reading.

Shena Yue, a senior economist, said household demand remained the weak point. She said the property downturn was weighing on home purchases and related durable goods, while exports had not fully offset domestic weakness.

Beijing has held back from major new measures to stimulate domestic demand as local government debt concerns persist and the benefits of consumer trade-in subsidies fade. Yue said investment in high-tech manufacturing and electronics capacity use remained resilient, supported by global AI demand and domestic policy priorities, even as overall investment and industrial utilization stayed subdued.