China's factories are running at 73.6% capacity, down from last quarter

China's industrial capacity utilization fell to 73.6% in the first quarter of 2026. This means factories are producing less relative to their maximum output, a drop of 1.3 percentage points from the previous quarter.

When factories run below capacity, it means there is less demand for their products. This can lead to lower profits for companies and fewer jobs for workers. It also suggests that the economy is not growing as fast as it could be, as existing resources are underutilized.