China's industrial sector displayed signs of recovery in the first four months of 2025, with profits among major industrial firms increasing by 1.4 percent year on year, according to data from the National Bureau of Statistics (NBS).

This upward trend reflects a growing momentum in the country's economic landscape.

In April alone, industrial profits witnessed a growth of 3.0 percent compared to the same month the previous year, marking an improvement of 0.4 percentage points over March.

This growth represents the second consecutive month of positive change, attributed to various policy stimuli and strong performance in advanced manufacturing sectors.

The resurgence was particularly prominent in equipment manufacturing and high-tech industries, where profits surged considerably.

In the first four months of the year, profits in the equipment manufacturing sector increased by 11.2 percent year on year, contributing 3.6 percentage points to the overall growth of industrial profits.

Notably, seven out of eight sub-sectors within this sector reported double-digit profit growth.

Specific sub-sectors such as specialized equipment and general machinery experienced profit increases of 13.2 percent and 11.7 percent, respectively.

The consumer goods industries, including home appliances, also benefited from robust performance, reflecting a broader trend in industrial activity.

Yu Weining, a statistician at the NBS, linked the profit growth to various policy measures.

These included large-scale equipment upgrades and consumer goods trade-in programs aimed at stimulating demand.

He noted that while the data illustrates the resilience of China's industrial sector and the capability of emerging industries to counterbalance traditional economic weaknesses, there remain challenges.

Yu emphasized that external uncertainties and continued weak domestic demand are factors to consider, highlighting the necessity for consolidating the recovery's foundations.