Profits of China's industrial firms above a designated size increased 18.7 percent year on year in the first half, data from the National Bureau of Statistics showed on Monday.

Industrial firms with an annual main business revenue of at least 20 million yuan saw their combined profits reach 3.95 trillion yuan in the January - June period.

On a month-to-month basis, the first-half growth pace was solid, though slower, than the 18.8 percent increase for January to May, as resilient exports helped cushion sluggish domestic demand, highlighting the economy's uneven recovery despite policymakers' efforts to spur consumption.

Exports and industrial production have done much of the heavy lifting for the world's second-largest economy. Persistent weakness in consumption and the property sector, however, helped drag second-quarter growth to its slowest pace in more than three years, keeping calls alive for further policy support to address economic imbalances.

Industrial profit growth eased to 15.1 percent in June from 21.1 percent in May.

The figures add to evidence of a two-speed recovery in which manufacturers have benefited from robust overseas demand, while sectors tied to domestic spending continue to struggle.

Underlining strains in the domestic market, automobile manufacturing profits fell 19.5 percent in the first half as car sales declined for a ninth consecutive month in June.

Attention is now turning to the Communist Party's Politburo meeting at the end of July, a key policy-setting gathering where investors will look for signals on additional support measures.

Expectations for a broad-based stimulus package have been tempered, however, by resilient exports and Beijing's preference for targeted easing. (Reuters & Xinhua)