China’s industrial sector is losing momentum as official data showed profits at major industrial firms fell 9.1% in May from a year earlier, reversing April’s 3% increase and marking the steepest monthly drop since October. The setback left cumulative profits for January-to-May down 1.1% year on year, with automakers posting an 11.9% slide over the same period. The deterioration coincides with rising headwinds from a 145% U.S. tariff imposed in April and still-weak domestic demand. Analysts said the figures signal that Beijing’s existing stimulus, including targeted tax breaks and credit support, has yet to revive corporate earnings. Price data released separately point to persistent deflationary pressure. In June, the producer price index fell 3.6% from a year earlier, the sharpest decline in nearly two years, while the consumer price index edged up just 0.1%, ending four consecutive months of declines. Core CPI, which excludes food and energy, rose 0.7%, its highest reading in 14 months but still subdued. The combination of falling factory-gate prices and shrinking profits is intensifying calls for stronger policy support. Economists expect authorities to consider additional fiscal spending and further interest-rate cuts to help manufacturers withstand tariff pressure and rekindle domestic demand.