China’s industrial profit growth slows for first time in 6 months as weak domestic demand bites

China’s industrial profit growth saw a dip in May, despite robust exports and rising factory prices. This slowdown, the first in six months, highlights persistent weak domestic demand and sluggish investment. While global AI trends and energy market disruptions offered some support, they weren’t enough to overcome internal economic pressures. Companies in certain sectors continue to face challenges, indicating an ongoing imbalance between supply and demand within the country.