Industrial profits in China rose 21.1 percent in May from a year earlier, down from 24.7 percent in April, according to China's National Bureau of Statistics.
The lower profit growth rate surprises analysts, since producer prices began to increase in March for the first time in more than three years, while AI investments have increased the demand for advanced technical equipment from China.
One factor that is creating downward pressure on profit levels is more expensive energy, raw materials and transportation as a result of the war in Iran.
During the period January–May this year, Chinese corporate profits totaled 3.14 trillion yuan (equivalent to 4.5 trillion kronor).
