National Economy Maintained Stable Performance and Progress with Good Momentum for Growth in August

National Bureau of Statistics of China

14 September 2017

In August, all regions and departments earnestly implemented the decisions and arrangements made by the Central Committee of the Communist Party of China and the State Council, remained committed to the underlying principle of making progress while keeping performance stable, and firmly advanced the supply-side structural reform. National economy registered an overall stable performance with deepening structural adjustment, strengthening new driving forces and steadily improving quality and efficiency. National economy maintained stable performance and progress with good momentum for growth.

1. Industrial Production Grew Steadily and Enterprise Profits Continued to Improve.

In August, the total value added of industrial enterprises above designated size grew by 6.0 percent in real terms year-on-year, or 0.4 percentage point lower than that of previous month. It grew by 0.46 percent month-on-month, or 0.05 percentage point faster than in July. An analysis by types of ownership showed that the value added of state holding enterprises went up by 7.8 percent year-on-year; collective enterprises down by 2.1 percent; share-holding enterprises up by 5.8 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 7.9 percent. The value added of mining industry was down by 3.4 percent year-on-year; manufacturing up by 6.9 percent, or 0.2 percentage point faster than in July; and production and supply of electricity, heat, gas and water up by 8.7 percent. The sales ratio of industrial enterprises above designated size reached 98.5 percent. In the first eight months, the value added of industrial enterprises above designated size grew by 6.7 percent year-on-year. In August, the manufacturing Purchasing Managers’ Index was 51.7 percent, or 0.3 percentage point higher than previous month, representing the 13th straight month of expansion.

In the first seven months of 2017, the total profits made by industrial enterprises above designated size was 4,248.1 billion yuan, up by 21.2 percent year-on-year. The profit rate from principle business was 6.09 percent, up by 0.41 percentage point year-on-year.

2. The Service Industry Grew Fast and Business Activity Index Continued to Stay at Expansion Zone.

In August, the Index of Services Production increased by 8.3 percent year-on-year, maintaining the same growth rate as previous month, and 0.9 percentage point faster compared to the same month of last year. Information transmission, software and information technology services, rental and business services sustained two digit growth. In the first eight months, the Index of Services Production increased by 8.3 percent year-on-year, up 0.2 percentage point from the same period of last year. In the first seven months, the business revenue of services enterprises above designated size increased by 13.4 percent year-on-year, 0.2 percentage points faster than in the first half of the year; their operating profits went up by 22.6 percent year-on-year, 6.6 percentage points faster than in the first half of the year.

In August, business activity index for services continued to stay at expansion zone with a reading of 52.6 percent. Specifically, the business activity index for sectors such as air transport, postal services, telecommunications, broadcast, television and satellite transmission, and internet and software information technology services continued to stay within the fast expansion range of 60.0 percent and above. In terms of market demand, index for new orders in services was 50.3 percent, 0.1 percentage point faster than previous month, seeing its 4th straight month of expansion.

3. Investment in Fixed Assets Witnessed Slight Decline while Investment Structure Continued to Optimize.

In the first eight months, the total investment in fixed assets (excluding rural households) was 39,415.0 billion yuan, a year-on-year growth of 7.8 percent, or 0.5 percentage point lower than that of the first seven months. Of the total, the investment by state holding enterprises reached 14,382.7 billion yuan, an increase of 11.2 percent; private investment reached 23,914.8 billion yuan, up by 6.4 percent, accounting for 60.7 percent of the total investment. The investment in the primary industry reached 1,270.2 billion yuan, up by 12.2 percent year-on-year; that in the secondary industry was 14,822.9 billion yuan, up by 3.2 percent, of which, that in manufacturing was 12,168.0 billion yuan, up by 4.5 percent; investment in the tertiary industry was 23,322.0 billion yuan, up by 10.6 percent. The investment in infrastructure reached 8,474.8 billion yuan, up by 19.8 percent year-on-year. The investment in high-tech industry grew by 19.5 percent, or 11.7 percentage points higher than the growth rate of total investment. The investment in high energy-consuming manufacturing sectors dropped 1.6 percent year-on-year. The funds in place for investment in fixed assets were 39,620.7 billion yuan, up by 2.8 percent year-on-year and 1.3 percentage points higher than the first seven months. The total planned investment in newly-started projects was 33,011.8 billion yuan, a year-on-year rise of 2.2 percent, and was 0.3 percentage point faster than the first seven months. In August, the investment in fixed assets (excluding rural households) grew by 0.57 percent month-on-month.

4. The Investment in Real Estate Development Increased Steadily and the Floor Space of Commercial Buildings for Sale Decreased Further.

In the first eight months, the total investment in real estate development was 6,949.4 billion yuan, a year-on-year growth of 7.9 percent, with no change from the first seven months. Of the total, the investment in residential buildings went up by 10.1 percent. Floor space of houses newly started was 1,149.96 million square meters, up by 7.6 percent year-on-year. Specifically, the floor space of residential buildings newly started increased by 11.6 percent. The floor space of commercial buildings sold reached 985.39 million square meters, up by 12.7 percent year-on-year. Of this total, that of residential buildings went up by 10.3 percent. The sales of commercial buildings were 7,809.6 billion yuan, up by 17.2 percent year-on-year. Of this total, the sales of residential buildings grew by 14.2 percent. The land space purchased by real estate development enterprises was 142.29 million square meters, up by 10.1 percent year-on-year. At the end of August, the floor space of commercial buildings for sale was 623.52 million square meters, 11.44 million square meters less than that at the end of July. The funds in place for real estate development enterprises in the first eight months reached 9,980.4 billion yuan, up by 9.0 percent year-on-year.

5. Market Sales Maintained Fast Growth and Online Retailing Showed a Strong Growth Momentum.

In August, the total retail sales of consumer goods reached 3,033.0 billion yuan, a year-on-year increase of 10.1 percent, which was 0.3 percentage point lower than that of previous month. It registered a month-on-month increase of 0.76 percent, which was 0.05 percentage point faster than previous month. Analyzed by different areas, the retail sales in urban areas reached 2,616.9 billion yuan, up by 9.9 percent year-on-year, and those in rural areas amounted to 416.1 billion yuan, up by 11.5 percent. Grouped by consumption patterns, the total income of catering industry was 336.0 billion yuan, up by 10.7 percent year-on-year; and retail sales of goods were 2,697.0 billion yuan, up by 10.1 percent. In particular, the retail sales of units above designated size reached 1,240.0 billion yuan, up by 7.5 percent. The sales of upgraded consumer goods witnessed fast growth. The sales of sports and recreational articles and sales of communication products increased 14.9 percent and 12.2 percent respectively. In the first eight months, the total retail sales of consumer goods increased by 10.4 percent year-on-year, maintaining the same growth rate as in the first seven months.

In the first eight months, the online retail sales reached 4,251.1 billion yuan, up by 34.3 percent year-on-year, and 0.6 percentage point faster than in the first seven months. Of the total, the online retail sales of physical goods were 3,210.1 billion yuan, an increase of 29.2 percent, accounting for 13.8 percent of the total retail sales of consumer goods, or 2.2 percentage points higher than that in the same period of last year. The online retail sales of non-physical goods were 1,041.1 billion yuan, an increase of 52.9 percent.

6. Consumer Price Rose Mildly and Producer Prices for Industrial Products Further Rose.

In August, the consumer price went up by 1.8 percent year-on-year, which was 0.4 percentage point higher than that in July. Grouped by categories, prices for food, tobacco and liquor rose by 0.4 percent year-on-year; clothing up by 1.3 percent; housing went up by 2.7 percent; articles and services for daily use grew by 1.3 percent; transportation and communication increased by 0.7 percent; education, culture and recreation grew by 2.5 percent; health care up by 5.9 percent; and other articles and services grew by 1.4 percent. In terms of food, tobacco and liquor prices, that for grain went up by 1.6 percent, pork down by 13.4 percent and fresh vegetables up by 9.7 percent. In August, the consumer price went up by 0.4 percent month-on-month. In the first eight months, the consumer price went up by 1.5 percent year-on-year.

In August, the producer prices for industrial products went up by 6.3 percent year-on-year, or 0.8 percentage point higher than in July. They rose by 0.9 percent month-on-month. In the first eight months, the producer prices for industrial products went up by 6.4 percent year-on-year. In August, the purchasing prices for industrial producers went up by 7.7 percent year-on-year, and 0.8 percent month-on-month. In the first eight months, the purchasing prices for industrial producers increased by 8.4 percent year-on-year.

7. Imports and Exports Grew Rapidly and the Share of General Trade and Mechanical and Electrical Products Exports Increased.

In August, the total value of imports and exports reached 2,406.4 billion yuan, a year-on-year increase of 10.1 percent. The total value of exports was 1,346.4 billion yuan, up by 6.9 percent; and that of imports was 1,060.0 billion yuan, up by 14.4 percent. The trade surplus was 286.5 billion yuan. The total value of imports and exports of the first eight months reached 17,833.8 billion yuan, a year-on-year increase of 17.1 percent. Of the total, the value of exports was 9,851.8 billion yuan, up by 13.0 percent; the total value of imports was 7,982.0 billion yuan, up by 22.5 percent. From January to August, the import and export of general trade increased by 17.9 percent, accounting for 56.7 of the total value of imports and exports, 0.4 percentage point higher than the same period of last year. The export of the mechanical and electrical products rose 13.4 percent, accounting for 57.1 percent of the total export, 0.3 percentage point higher than the same period of last year.

In August, the export delivery value of the industrial enterprises above designated size reached 1,089.5 billion yuan, up by 8.2 percent year-on-year. In the first eight months, the export delivery value of the industrial enterprises above designated size reached 8,267.4 billion yuan, up by 10.3 percent year-on-year.

8. Supply-side Structural Reform Advanced Steadily and Transformation and Upgrading Produced Significant Results.

New progress was made in the work of cutting overcapacity, reducing excess inventory, deleveraging, lowering costs, and strengthening areas of weakness. The work of reducing excess capacity and inventory accelerated. By the end of July, smooth progress had been made in cutting steel overcapacity with production and sale of substandard steel products banned according to law, and the production capacity of coal had reduced 128 million tons, achieving 85 percent of the yearly target. At the end of August, the floor space of commercial buildings for sale reduced by 12.0 percent year-on-year, 1.0 percentage point higher than the previous month. Debt-to-asset ratio and production costs continued to drop. At the end of July, debt-to-asset ratio of industrial enterprises above designated size was 55.8 percent, 0.7 percentage point lower than the same period of last year. In the first seven months, the cost of per-hundred-yuan revenue from principle business of industrial enterprises above designated size was 85.72 yuan, down 0.04 yuan from the same period of last year. Investment in areas of weakness grew rapidly. From January to August, investment in ecological protection and treatment of environment pollution, management of public utility, road transport, management of water conservancy and agriculture rose 28.2, 24.3, 24.1, 17.6 and 16.1 percent respectively.

Industrial structural adjustment and new growth drivers made new progress. New industries and new products which had high-tech content, was low resource consuming, and led to transformation and upgrading developed rapidly. In August, the value added of high-tech industries and equipment manufacturing increased 12.9 and 11.6 percent year-on-year, which was 0.8 and 0.9 percentage point faster than the previous month, and 6.9 and 5.6 percentage points faster than industrial enterprises above designated size. In the first eight months, production capacity of industrial robots increased 63.0 percent; that of new energy vehicles went up 25.4 percent, and that of Sport Utility Vehicles (SUV) up 17.2 percent. Emerging service industries and producers services developed rapidly. In the first seven months, business revenue of strategic emerging service industries and producers services above designated size rose 16.8 and 14.5 percent year-on-year respectively.

As a whole, national economy maintained stable performance and progress with good momentum for growth in August. It manifested steady growth, optimizing structure and improved quality. However, we should be aware that international conditions remain complex and volatile, while domestic economy is on an uphill journey of structural adjustment and facing many concerns and challenges. At the next step, united even closer around the Party Central Committee with Comrade Xi Jinping at its core, we will stick to the general principle of seeking progress while maintaining performance stable, guide the new normal with new development philosophy, focus on supply-side structural reform, expand appropriately aggregate demand, deepen innovation-driven development, strengthen social expectation guidance, invigorate economy through reforms, promote development and transformation through innovation, emphasize on quality and efficiency improvement, strengthen real economy and guard against risks, so as to cement the foundation for steady and sound development.

Notes:

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

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

3. To reflect timely the monthly performance of economic activities in services sector, the National Bureau of Statistics of China compiled the Index of Services Production, and disseminated the information since March 2017. The Index of Services Production reflects the output changes between reporting period and base period after excluding price factors.

4. 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 principal business 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, services).

The total retail sales of consumer goods include the online retail sales of physical goods, and exclude that of non-physical goods.

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

6. 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.