China National Economy Was Generally Stable in August

14 September 2024

 

In August, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments strictly implemented the decisions and arrangements made by the CPC Central Committee and the State Council. All regions and departments adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, strengthened macro-regulation and strove to promote high-quality development. As a result, the production and demands sustained a recovery, employment and prices were basically stable, and high-quality development continued to move ahead. The national economy maintained stability in general while making steady progress.

 

1. Industrial Production Increased Steadily with Fast Growth in Equipment Manufacturing and High-Tech Manufacturing.

 

In August, the total value added of the industrial enterprises above the designated size grew by 4.5 percent year on year, or up by 0.32 percent month on month. In terms of sectors, the value added of mining went up by 3.7 percent year on year, manufacturing up by 4.3 percent and the production and supply of electricity, thermal power, gas and water up by 6.8 percent. The value added of equipment manufacturing increased by 6.4 percent year on year, and that of high-tech manufacturing increased by 8.6 percent, 1.9 percentage points and 4.1 percentage points faster than that of the total value added of the industrial enterprises above the designated size. An analysis by types of ownership showed that the value added of state holding enterprises was up by 3.6 percent year on year; that of share-holding enterprises was up by 5.0 percent; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 2.8 percent; and that of private enterprises was up by 4.5 percent. In terms of products, the production of new-energy vehicles, service robots and integrated circuits grew by 30.5 percent, 20.1 percent and 17.8 percent year on year respectively. In the first eight months, the total value added of the industrial enterprises above the designated size went up by 5.8 percent year on year. In August, the Manufacturing Purchasing Managers’ Index stood at 49.1 percent, and the Production and Operation Expectation Index was 52.0 percent. In the first seven months, the total profits made by industrial enterprises above the designated size were 4,099.2 billion yuan, up by 3.6 percent year on year.

 

2. Service Sector Continued to Recover and Modern Services Developed Well.

 

In August, the Index of Services Production grew by 4.6 percent year on year. Specifically, that of information transmission, software and information technology services, leasing and business services, financial intermediation, transport, storage and postal services grew by 12.1 percent, 9.4 percent, 5.7 percent and 5.2 percent year on year respectively, 7.5 percentage points, 4.8 percentage points, 1.1 percentage points and 0.6 percentage points faster than that of the Index of Services Production. In the first eight months, the Index of Services Production increased by 4.9 percent year on year. In the first seven months, the business revenue of service enterprises above the designated size went up by 7.4 percent year on year. In August, the Business Activity Index for Services was 50.2 percent and the Business Activity Expectation Index for Services was 55.4 percent. Specifically, the Business Activity Index for railway transportation, air transportation, postal services, telecommunication, broadcast, television and satellite transmission services, and culture, sports and recreation stayed within the high expansion range of 55.0 percent and above.

 

3. Market Sales Kept Increasing and Online Retail Sales Grew Rapidly.

 

In August, the total retail sales of consumer goods reached 3,872.6 billion yuan, up by 2.1 percent year on year, or down by 0.01 percent month on month. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 3,357.5 billion yuan, up by 1.8 percent year on year; and that in rural areas reached 515.1 billion yuan, up by 3.9 percent. Grouped by types of consumption, the retail sales of goods were 3,437.5 billion yuan, up by 1.9 percent; the income of catering was 435.1 billion yuan, up by 3.3 percent. Certain basic living goods and upgraded goods sold well. The retail sales of grain, oil and food and that of traditional Chinese and western medicines by enterprises above the designated size went up by 10.1 percent and 4.3 percent respectively; the retail sales of telecommunication equipment and that of household appliances and audio-video equipment went up by 14.8 percent and 3.4 percent respectively. In the first eight months, the total retail sales of consumer goods reached 31,245.2 billion yuan, up by 3.4 percent year on year. The online retail sales was 9,635.2 billion yuan, up by 8.9 percent year on year. Specifically, the online retail sales of physical goods were 8,014.3 billion yuan, up by 8.1 percent, accounting for 25.6 percent of the total retail sales of consumer goods. In the first eight months, the retail sales of services grew by 6.9 percent year on year.

 

4. Investment in Fixed Assets Scaled up and Investment in High-Tech Industries Grew Fast.

 

In the first eight months, the investment in fixed assets (excluding rural households) reached 32,938.5 billion yuan, up by 3.4 percent year on year; the investment in fixed assets was up by 7.7 percent with the investment in real estate development deducted. Specifically, the investment in infrastructure grew by 4.4 percent year on year, that in manufacturing grew by 9.1 percent, and that in real estate development declined by 10.2 percent. The floor space of new commercial buildings sold was 606.02 million square meters, down by 18.0 percent year on year; the total sales of new commercial buildings were 5,972.3 billion yuan, down by 23.6 percent. By industry, the investment in the primary industry went up by 2.9 percent year on year, that in the secondary industry up by 12.1 percent, and that in the tertiary industry down by 0.8 percent. The private investment declined by 0.2 percent year on year, and increased by 6.3 percent with the investment in real estate development deducted. The investment in high-tech industries grew by 10.2 percent year on year, of which the investment in high-tech manufacturing and high-tech services grew by 9.6 percent and 11.7 percent respectively. In terms of high-tech manufacturing, the investment in manufacturing of aerospace vehicle and equipment and in manufacturing of electronic and communication equipment grew by 34.4 percent and 10.0 percent respectively. In terms of high-tech services, the investment in professional technical services and in e-commerce services grew by 27.7 percent and 16.8 percent respectively. In August, the investment in fixed assets (excluding rural households) increased by 0.16 percent month on month.

 

5. Imports and Exports of Goods Grew Fast and Trade Structure Continued to Optimize.

 

In August, the total value of imports and exports of goods was 3,752.3 billion yuan, up by 4.8 percent year on year. The value of exports was 2,200.8 billion yuan, up by 8.4 percent, and the value of imports was 1,551.5 billion yuan, maintaining the same level year on year. The trade balance was 649.3 billion yuan in surplus. In the first eight months, the total value of imports and exports of goods was 28,583.8 billion yuan, up by 6.0 percent. The total value of exports was 16,455.2 billion yuan, up by 6.9 percent. The total value of imports was 12,128.6 billion yuan, up by 4.7 percent. In the first eight months, the imports and exports of general trade went up by 4.6 percent, accounting for 64.6 percent of the total value of imports and exports. The imports and exports by private enterprises went up by 10.5 percent, accounting for 55.1 percent of the total value of imports and exports, 2.3 percentage points higher than that of the same period last year. The exports of mechanical and electrical products went up by 8.8 percent, accounting for 59.1 percent of the total value of exports.

 

6. Employment Was Generally Stable and Urban Surveyed Unemployment Rate Increased Slightly.

 

In the first eight months, the urban surveyed unemployment rate averaged 5.2 percent, 0.1 percentage points lower than that of the same period last year. In August, the urban surveyed unemployment rate was 5.3 percent, 0.1 percentage points higher than that of the previous month. The surveyed unemployment rate of population with local household registration was 5.4 percent and that of population with non-local household registration was 4.9 percent, among which, the rate of the population with non-local agricultural household registration was 4.6 percent. The urban surveyed unemployment rate in 31 major cities was 5.4 percent. The employees of enterprises worked 48.7 hours per week on average.

 

7. Increase of Consumer Price Expanded and Producer Prices for Industrial Products Declined.

 

In August, the consumer price index (CPI) went up by 0.6 percent year on year, 0.1 percentage points faster than that in July; or up by 0.4 percent month on month. Grouped by commodity categories, prices for food, tobacco and alcohol were up by 2.1 percent year on year; clothing up by 1.4 percent; housing maintaining the same level year on year; articles and services for daily use up by 0.2 percent; transportation and communication down by 2.7 percent; education, culture and entertainment up by 1.3 percent; medical services and health care up by 1.3 percent; and other articles and services up by 3.4 percent. Among the prices for food, tobacco and alcohol, the price for grain went down by 0.1 percent, fresh fruits up by 4.1 percent, pork up by 16.1 percent and fresh vegetables up by 21.8 percent. The core CPI excluding the prices of food and energy went up by 0.3 percent year on year. In the first eight months, the CPI went up by 0.2 percent year on year.

 

In August, the producer prices for industrial products went down by 1.8 percent year on year, or down by 0.7 percent month on month. The purchasing prices for industrial producers went down by 0.8 percent year on year, or down by 0.6 percent month on month. In the first eight months, the producer prices and the purchasing prices for industrial products dropped by 1.9 percent and 2.1 percent year on year respectively.

 

Generally speaking, the national economy was generally stable in August with steady progress in pursuing high-quality development. However, we should be aware that the adverse impacts arising from the changes in the external environment are increasing, effective demands remain insufficient at home, and the sustained economic recovery is still confronted with multiple difficulties and challenges. At the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 20th CPC National Congress and the Second and Third Plenary Sessions of the 20th CPC Central Committee, adhere to the principle of pursuing progress while ensuring stability, and fully and faithfully apply the new development philosophy on all fronts. We must accelerate the efforts to create a new pattern of development, take reform as the driving force in promoting steady growth, making structural adjustments and guarding against risks, strive to promote high-quality development, and speed up the implementation of the reform tasks and policy measures so as to consolidate the foundation for sustained economic recovery and growth.

 

Notes:

 

1. The growth rates of value added of industrial enterprises above designated size and its sub-items are calculated at comparable prices. Both are real growth rates. The growth rates of other indicators are nominal growth by using current prices unless otherwise specified.

 

2. Industrial enterprises above designated size are industrial enterprises with annual revenue from principal business over 20 million yuan.

 

As industrial enterprises above the designated size change every year, to ensure the data comparability between years, the coverage of the data of the same period last year used for estimating year-on-year growth rates like that of products output, are as consistent as possible with the current period and different from the coverage of the data published last year. The main reasons are as follows: First, the statistical units change. Every year, some enterprises are included in the survey as they meet the threshold, while some enterprises are removed from the survey because of downsizing. Besides, enterprises that have newly gone into operation, been bankrupted, canceled their registrations or had their business licenses revoked also cause impact. Second, duplicated outputs across regions of enterprise groups have been removed based on the ad hoc surveys since duplication is found in the products output of some enterprise groups.

 

3. The Index of Services Production is the change of production in the reporting period compared to the base period with the price factors deducted.

 

4. The scope of the total retail sales of consumer goods include all legal entities, establishments and self-employed individuals involved in retail trades or providing catering services. Specifically, businesses above the designated size include wholesale enterprises (businesses, self-employed individuals), retail enterprises (businesses, self-employed individuals) and lodging and catering enterprises (businesses, self-employed individuals) with annual revenue from principal business over 20 million yuan, 5 million yuan and 2 million yuan respectively.

 

As the wholesale, retail, and lodging and catering enterprises (businesses, self-employed individuals) above the designated size change every year, to ensure the data comparability between years, the coverage of the data of the same period last year used for estimating year-on-year growth rates like that of the retail sales of consumer goods by businesses above the designated size is consistent with the current period and different from the coverage of data published last year. The main reasons are: some enterprises (businesses, self-employed individuals) are included in the survey as they meet the threshold, while some enterprises (businesses, self-employed individuals) are removed from the survey because of downsizing every year. Besides, enterprises (businesses, self-employed individuals) that have newly gone into operation, been bankrupted, canceled their registrations or had their business licenses revoked also cause impact.

 

Online retail sales refer to the retail sales of goods and services realized through internet trading platforms (including self-built websites and third-party platforms). Goods and services include physical goods and non-physical goods (e.g. virtual goods and services).

 

The total retail sales of consumer goods include the online retail sales of physical goods, but not the non-physical goods.

 

5. The retail sales of services refer to the total value of services directly provided by enterprises (establishments, self-employed units) to individuals and other units for non-production and non-operating purposes in the form of transactions. It aims to reflect the value of services with the nature of consumption sold by service providers in monetary terms, including the retail sales of services in transportation, accommodation, catering, education, health, sports, entertainment, and other fields.

 

6. The growth rates of investment in fixed assets are calculated on a comparable basis.

 

7. Data of imports and exports are from the General Administration of Customs.

 

8. Employed people refer to people aged 16 and above who have the ability to work and engage in gainful employment for remuneration payment or business income.

 

9. Due to the rounding-off reasons, the subentries may not add up to the aggregate totals.

 

In case of any differences between English translation and the original Chinese text, the Chinese edition shall prevail.