National Economy Grew Steadily with Good Momentum in August

National Bureau of Statistics of China

13 September 2016

In August, with the deepening of supply-side structural reform and progresses made thanks to macro policies of stabilizing growth, adjusting structure and benefiting people’s livelihood, some indicators picked up, efforts of cutting overcapacity, reducing inventory, deleveraging, lowering costs and strengthening weak links achieved notable results, new economy and new momentum enjoyed rapid growth, the national economy has achieved moderate but steady and sound development.

1. Industrial Production Fastened with Further Efficiency Improvement of Enterprises.

In August, the total value added of the industrial enterprises above designated size was up by 6.3 percent year-on-year at comparable prices, 0.3 percentage point faster than that in July, or 0.2 percentage point faster than that in the same period of last year. An analysis by types of ownership showed that the value added of state holding enterprises went up by 3.6 percent; collective enterprises dropped by 4.1 percent; share-holding enterprises up by 6.4 percent; and a 6.7 percent growth for enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan. The value added of mining industry was down by 1.3 percent year-on-year; manufacturing up by 6.8 percent and the production and supply of electricity, heat, gas and water up by 7.0 percent. The industrial structure continued to be improved. The value added of high-tech industry and equipment manufacturing industry grew by 11.8 percent and 10.8 percent respectively, 5.5 percentage points and 4.5 percentage points higher than that of the industrial enterprises above designated size. In August, the sales ratio of industrial enterprises above designated size was 98.1 percent. The total value added of the industrial enterprises above the designated size was up by 0.53 percent month-on-month. In the first eight months of the year, the total value added of the industrial enterprises above designated size was up by 6.0 percent year-on-year.

In the first seven months of this year, the profits made by industrial enterprises above designated size stood at 3,523.6 billion yuan, up by 6.9 percent year-on-year, or 0.7 percentage point higher than that of the first six months. The costs for per-hundred-yuan turnover of primary activities of the industrial enterprises above designated size reached 85.83 yuan, decreased by 0.25 yuan compared with that in the same period of last year. The profit rate from primary activities was 5.67 percent, 0.22 percentage point higher than that in the same period of last year. At the end of July, inventory of finished goods dropped by 1.8 percent year-on-year, marking the fourth straight month of decline.

2. Investment in Fixed Assets Grew Steadily and Investment in Infrastructure Enjoyed Fast Growth.

In the first eight months, the investment in fixed assets (excluding rural households) was 36,633.9 billion yuan, a year-on-year growth of 8.1 percent, the same level as that in the first seven months of this year. Of the total, the investment by state holding enterprises reached 12,955.1 billion yuan, an increase of 21.4 percent; private investment reached 22,500.5 billion yuan, up by 2.1 percent, the same level as that in the first seven months of this year and accounting for 61.4 percent of the total investment. The investment in the primary industry reached 1,141.3 billion yuan, up by 21.5 percent year-on-year; that in the secondary industry was 14,385.9 billion yuan, up by 3.0 percent; and that in the tertiary industry was 21,106.8 billion yuan, up by 11.2 percent. The investment in the high-tech industry enjoyed rapid growth. In the first eight months, it went up by 15.5 percent year-on-year, which was 1.3 percentage points higher than that in the first seven months, and 7.4 percentage points higher than the total investment growth. The investment in infrastructure maintained fast growth, with an increase of 19.7 percent in the first eight months of the year, 0.1 percentage point higher than that in the first seven months. The funds in place for investment were 38,553.5 billion yuan, up by 6.2 percent year-on-year. Specifically, the state budget went up by 20.3 percent, domestic loans grew by 9.3 percent, self-raising funds increased by 0.2 percent and foreign investment was down by 17.3 percent. The total planned investment in newly-started projects was 32,303.7 billion yuan, a year-on-year increase of 22.7 percent. In August, the investment in fixed assets (excluding rural households) increased 8.2 percent year-on-year, 4.3 percentage points faster than that of July. Respectively, investment in manufacturing was up by 2.1 percent, 0.5 percentage point faster; private investment was up by 2.3 percent, 3.5 percentage points faster. The investment in fixed assets (excluding rural households) went up by 0.58 percent month-on-month in August.

3. The Growth of Investment in Real Estate Development Picked up Slightly and the Floor Space of Commercial Buildings for Sale Continued to Decrease.

In the first eight months of 2016, the total investment in real estate development was 6,438.7 billion yuan, up by 5.4 percent year-on-year, which was 0.1 percentage point higher than that in the first seven months of this year or 1.9 percentage points higher over that in the same period of last year. Of the total, the investment in residential buildings went up by 4.8 percent. Floor space of houses newly started was 1,068.34 million square meters, up by 12.2 percent year-on-year. Specifically, the floor space of residential buildings newly started increased by 11.7 percent. The floor space of commercial buildings sold reached 874.51 million square meters, up by 25.5 percent year-on-year. Of this total, that of residential buildings went up by 25.6 percent. The sales of commercial buildings were 6,662.3 billion yuan, grew by 38.7 percent year-on-year. Of this total, that of residential buildings grew by 40.1 percent. The land space purchased by real estate development enterprises was 129.22 million square meters, down by 8.5 percent year-on-year. By the end of August, the floor space of commercial buildings for sale reached 708.70 million square meters, 5.12 million square meters less than that at the end of July, a decline for the sixth consecutive month. The funds in place for real estate development enterprises in the first eight months reached 9,157.3 billion yuan, up by 14.8 percent year-on-year.

4. Market Sales Enjoyed Steady Rise and Online Retailing Kept Fast Growth.

In August, the total retail sales of consumer goods reached 2,754.0 billion yuan, a nominal year-on-year increase of 10.6 percent (a real growth of 10.2 percent after deducting price factors), which was 0.4 percentage point higher than that in the previous month, or 0.2 percentage point lower than that in the same period of last year. Specifically, the retail sales of the units above designated size stood at 1,225.0 billion yuan, up by 8.5 percent. Analyzed by different areas, the retail sales in urban areas reached 2,380.8 billion yuan, up by 10.6 percent, and that in rural areas stood at 373.2 billion yuan, up by 10.9 percent. Grouped by consumption patterns, the total income of catering industry was 303.6 billion yuan, up by 10.3 percent year-on-year; and retail sales of goods were 2,450.4 billion yuan, up by 10.7 percent. In particular, the retail sales of units above designated size reached 1,147.5 billion yuan, up by 8.8 percent. Categories of transportation and housing saw rapid year-on-year growth: the retail sales of motor vehicles went up by 13.1 percent; furniture up by 11.1 percent and building and decoration materials up by 16.3 percent. In August, the total retail sales of consumer goods grew by 0.83 percent month-on-month. In the first eight months, the total retail sales of consumer goods went up by 10.3 percent year-on-year.

In the first eight months, the online retail sales reached 3,021.0 billion yuan, up by 26.7 percent year-on-year, among which the retail sales of physical goods were 2,434.7 billion yuan, an increase of 25.5 percent, accounting for 11.6 percent of the total retail sales of consumer goods.

5. The Growth of Exports Speeded up with That of Imports Shifting from Negative One to Positive One.

The total value of imports and exports in August was 2,196.0 billion yuan, a year-on-year increase of 7.9 percent. The total value of exports was 1,271.0 billion yuan, up by 5.9 percent, 4.2 percentage points higher than that in July; and that of imports was 925.0 billion yuan, up by 10.8 percent while it was down by 5.7 in July. The trade surplus was 346.0 billion yuan. In the first eight months, the total value of imports and exports was 15,366.0 billion yuan, down by 1.8 percent year-on-year. The total value of exports was 8,838.2 billion yuan, down by 1.0 percent; and that of imports was 6,527.9 billion yuan, down by 2.9 percent.

In August, the export delivery value of the industrial enterprises above designated size reached 1,001.5 billion yuan, up by 2.9 percent year-on-year. In the first eight months, the export delivery value of the industrial enterprises above designated size was 7,503.2 billion yuan, up by 0.1 percent.

6. Year-on-year Growth of Consumer Price Slowed Down and the Year-on-Year Decline of Producer Prices for Industrial Products Continued to Narrow.

In August, the consumer price went up by 1.3 percent year-on-year, 0.5 percentage point lower than that in July. Specifically, the price went up by 1.4 percent in urban areas and 1.0 percent in rural areas. Grouped by commodity categories, prices for food, tobacco and liquor grew by 1.5 percent year-on-year; clothing up by 1.3 percent; housing went up by 1.5 percent; articles and services for daily use grew by 0.4 percent; transportation and communication decreased by 1.2 percent; education, culture and recreation grew by 1.3 percent; health care up by 4.3 percent; and other articles and services grew by 4.5 percent. In terms of food, tobacco and liquor prices, that for grain grew by 0.3 percent, pork up by 6.4 percent and fresh vegetables down by 3.9 percent. In August, the consumer price went up by 0.1 percent month-on-month. In the first eight months, the consumer price went up by 2.0 percent year-on-year.

In August, the producer prices for industrial products dropped by 0.8 percent year-on-year, narrowed by 0.9 percentage point than that in July, a decline for the eighth consecutive month; the prices went up by 0.2 percent month-on-month. In the first eight months, the producer prices for industrial products dropped by 3.2 percent year-on-year. In August, the purchasing prices for industrial producers went down by 1.7 percent year-on-year, or up by 0.2 percent month-on-month. In the first eight months, the prices dropped by 4.1 percent year-on-year.

As a whole, August witnessed positive changes in the national economy with picking up of main indicators, deepened structural reform and fastened growth of new momentums. However, we must be aware that the domestic and external economic conditions are still complicated and severe with many instability and uncertainties, and the foundation for a stabilized but progressing economy should be further consolidated. In the next stage, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we should continue to adhere to the general working guideline of making progress while maintaining stability, pay equal attention to demand-side management and supply-side reform, unswervingly advance the supply-side structural reform, appropriately expand the aggregate demand, stabilize the economic expectation through policy implementation, stimulate vitality through deepening reform, and reinforce momentums through innovation. We should take strong steps to ensure the implementation of policies for a sound and sustainable economic growth.

Notes:

1. The growth rate of value added of industrial enterprises above designated size and its sub-items are real growth by using comparable prices. 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 primary activities over 20 million yuan.

3.Units above designated size in total retail sales of consumer goods include wholesale enterprises, retail enterprises and lodging and catering enterprises with annual revenue from primary activities over 20 million yuan, 5 million yuan and 2 million yuan respectively.

The 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, excluding that of non-physical goods.

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

5. 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.