National Economy Maintained Stable Performance and Progress with Deepening Restructuring in November

National Bureau of Statistics of China

14 December 2017

In November, all regions and departments earnestly learned and put into action the guiding principles from the 19th National Congress of the Communist Party of China (CPC), took Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guide, and deepened the supply-side structural reform. As a result, the national economy sustained the momentum of steady progress, with sound growth of production demand, stable employment and commodities prices, optimized economic structure and improved quality and efficiency.

1. Industrial Production Grew Steadily and Enterprise Profits Grew Rapidly.

In November, the total value added of industrial enterprises above designated size grew by 6.1 percent in real terms year-on-year, 0.1 percentage point lower than that of last month. An analysis by types of ownership showed that the value added of state holding enterprises went up by 6.3 percent year-on-year; collective enterprises down by 0.7 percent; share-holding enterprises up by 6.2 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 6.8 percent. In terms of sectors, the value added of mining industry was down by 1.7 percent year-on-year; manufacturing up by 6.8 percent; and production and supply of electricity, heat, gas and water up by 4.5 percent. The sales ratio of industrial enterprises above designated size reached 97.8 percent. In November, the manufacturing Purchasing Managers’ Index was 51.8 percent, 0.2 percentage point higher than previous month. In the first eleven months, the value added of industrial enterprises above designated size grew by 6.6 percent year-on-year, 0.1 percentage point lower than that of the first ten months and 0.6 percentage point higher than that of the same period last year.

In the first ten months of 2017, the total profits made by industrial enterprises above designated size was 6,245.1 billion yuan, up by 23.3 percent year-on-year, 0.5 percentage point higher than that of the first nine months and 14.7 percentage points higher than that of the same period last year. The profit rate from principle business of industrial enterprises above designated size was 6.24 percent, 0.55 percentage point higher compared with that of the same period last year.

2. The Service Industry Sustained a Fast Growth and Business Activity Index Continued to Rise.

In November, the Index of Services Production increased by 7.8 percent year-on-year, 0.2 percentage point lower than that of October. Specifically, information transmission, software and information technology services, rental and business services maintained double-digit growth. In the first eleven months, the Index of Services Production increased by 8.2 percent year-on-year, the same as that of the first ten months and 0.1 percentage point higher than the same period last year. In the first ten months, the business revenue of services enterprises above designated size increased by 13.7 percent year-on-year, 3.1 percentage points higher than the same period last year; their operating profits went up by 29.0 percent year-on-year, 27.5 percentage points higher than the same period last year.

In November, business activity index for services maintained within the range of expansion with a reading of 53.6 percent. Specifically, the business activity index for sectors such as wholesale, retail sales, air transport, loading, unloading, handling and warehousing, postal and delivery services, telecommunications, broadcast, television and satellite transmission, internet and software information technology services and insurance stayed within the fast expansion range of 55.0 percent and above. In terms of market demand, index for new orders in services was 51.2 percent, seeing its 7th straight month of expansion.

3. The Growth of Investment in Fixed Assets was Slow yet Stable while Investment Structure Continued to be Optimized.

In the first eleven months, the total investment in fixed assets (excluding rural households) was 57,505.7 billion yuan, a year-on-year growth of 7.2 percent, 0.1 percentage point lower than that of the first ten months. Of the total, the investment by state holding enterprises reached 21,129.5 billion yuan, an increase of 11.0 percent; private investment reached 34,814.3 billion yuan, up by 5.7 percent, accounting for 60.5 percent of the total investment. The investment in the primary industry reached 1,897.9 billion yuan, up by 11.4 percent year-on-year; that in the secondary industry was 21,461.8 billion yuan, up by 2.6 percent, of which, that in manufacturing was 17,629.9 billion yuan, up by 4.1 percent; investment in the tertiary industry was 34,146.0 billion yuan, up by 10.1 percent, accounting for 59.4 percent of the total investment, 1.6 percentage points higher than the same period last year. The investment structure of manufacturing optimized noticeably. The investment in high-tech manufacturing grew by 15.9 percent, accounting for 13.4 percent of manufacturing investment, 1.4 percentage points higher than that of the same period last year. The investment in manufacturing technological transformation grew by 14.3 percent, accounting for 48.1 percent of manufacturing investment, 4.3 percentage points higher than that of the same period last year. The investment in high energy-consuming manufacturing dropped by 2.3 percent. The investment in infrastructure reached 12,672.0 billion yuan, up by 20.1 percent year-on-year, 0.5 percentage point higher than the first ten months. The funds in place for investment in fixed assets were 57,061.5 billion yuan, up by 4.4 percent year-on-year and 0.8 percentage point higher than that of the first ten months. The total planned investment in newly-started projects was 47,855.7 billion yuan, a year-on-year growth of 6.2 percent, 2.4 percentage points higher than that of the first ten months.

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

In the first eleven months, the total investment in real estate development was 10,038.7 billion yuan, a year-on-year growth of 7.5 percent, 0.3 percentage point lower compared with that of the first ten months. Of the total, the investment in residential buildings went up by 9.7 percent. Floor space of houses newly started was 1,616.79 million square meters, up by 6.9 percent year-on-year. Specifically, the floor space of residential buildings newly started increased by 10.8 percent. The floor space of commercial buildings sold reached 1,465.68 million square meters, up by 7.9 percent year-on-year. Of this total, that of residential buildings went up by 5.4 percent. The sales of commercial buildings were 11,548.1 billion yuan, up by 12.7 percent year-on-year. Of this total, the sales of residential buildings grew by 9.9 percent. The land space purchased by real estate development enterprises was 221.58 million square meters, up by 16.3 percent year-on-year. At the end of November, the floor space of commercial buildings for sale was 596.06 million square meters, 6.53 million square meters less than that at the end of October. The funds in place for real estate development enterprises in the first eleven months reached 13,948.9 billion yuan, up by 7.7 percent year-on-year.

5. The Growth of Market Sales Accelerated and Online Retailing Showed a Strong Growth Momentum.

In November, the total retail sales of consumer goods reached 3,410.8 billion yuan, a year-on-year increase of 10.2 percent, 0.2 percentage point higher than that of the previous month. Analyzed by different areas, the retail sales in urban areas reached 2,940.7 billion yuan, up by 9.9 percent year-on-year, and those in rural areas amounted to 470.1 billion yuan, up by 11.7 percent. Grouped by consumption patterns, the total income of catering industry was 367.5 billion yuan, up by 10.0 percent; and retail sales of goods were 3,043.3 billion yuan, up by 10.2 percent. The sales of upgraded consumer goods witnessed fast growth. In November, the sales of sports and recreational articles and cosmetics of units above designated size increased by 15.4 percent and 21.4 percent year-on-year respectively. In the first eleven months, the total retail sales of consumer goods increased by 10.3 percent year-on-year, 0.1 percentage point lower than that of the same period last year.

In the first eleven months, the online retail sales reached 6,430.6 billion yuan, up by 32.4 percent year-on-year, 6.2 percentage points higher than the same period last year. Of the total, the online retail sales of physical goods were 4,914.4 billion yuan, an increase of 27.6 percent, accounting for 14.8 percent of the total retail sales of consumer goods, 2.3 percentage points higher than that in the same period of last year. The online retail sales of non-physical goods were 1,516.3 billion yuan, an increase of 50.7 percent.

6. Consumer Price Rose Mildly and the Growth of Producer Prices for Industrial Products Declined.

In November, the consumer price went up by 1.7 percent year-on-year, which was 0.2 percentage point lower than that in October. Grouped by categories, prices for food, tobacco and liquor dropped by 0.2 percent year-on-year; clothing up by 1.2 percent; housing went up by 2.8 percent; articles and services for daily use grew by 1.5 percent; transportation and communication increased by 1.3 percent; education, culture and recreation grew by 2.0 percent; health care up by 7.0 percent; and other articles and services grew by 1.7 percent. In terms of food, tobacco and liquor prices, that for grain went up by 1.5 percent, pork down by 9.0 percent and fresh vegetables down by 9.5 percent. In November, the consumer price maintained the same month-on-month growth rate as that in October. In the first eleven months, the consumer price went up by 1.5 percent year-on-year.

In November, the producer prices for industrial products went up by 5.8 percent year-on-year, 1.1 percentage points lower than that in October, or rose by 0.5 percent month-on-month. In the first eleven months, the producer prices for industrial products went up by 6.4 percent year-on-year. In November, the purchasing prices for industrial producers went up by 7.1 percent year-on-year, or 0.6 percent month-on-month. In the first eleven months, the purchasing prices for industrial producers increased by 8.3 percent year-on-year.

7. Imports and Exports Grew Rapidly and the Export Structure Continued to be Optimized.

In November, the total value of imports and exports reached 2,604.9 billion yuan, a year-on-year increase of 12.6 percent. Specifically, the total value of exports was 1,434.2 billion yuan, up by 10.3 percent; and that of imports was 1,170.6 billion yuan, up by 15.6 percent. The trade surplus was 263.6 billion yuan. The total value of imports and exports of the first eleven months reached 25,136.9 billion yuan, a year-on-year increase of 15.6 percent. Of the total, the value of exports was 13,850.9 billion yuan, up by 11.6 percent; the value of imports was 11,286.0 billion yuan, up by 20.9 percent. From January to November, the import and export of general trade increased by 18.1 percent, accounting for 56.4 percent of the total value of imports and exports, 1.2 percentage points higher than the same period last year. The export of the mechanical and electrical products rose by 12.6 percent, accounting for 58.1 percent of the total export, 0.5 percentage point higher than the same period last year.

In November, the export delivery value of the industrial enterprises above designated size reached 1,194.2 billion yuan, up by 11.8 percent year-on-year. In the first eleven months, the export delivery value of the industrial enterprises above designated size reached 11,439.9 billion yuan, up by 11.1 percent year-on-year.

8. Supply-side Structural Reform Continued to Deepen and New Growth Driver Developed Rapidly.

Remarkable progress was made in the work of cutting overcapacity, reducing excess inventory and lowering costs. The annual targets for cutting the overcapacity of steel and coal were overfulfiled. At the end of November, the floor space of commercial buildings for sale reduced by 13.7 percent year-on-year, 0.4 percentage point higher than that at the end of last month. In the first ten months, the cost of per-hundred-yuan revenue from principle business of industrial enterprises above designated size was 85.46 yuan, 0.26 yuan less than the same period last year. The work of deleveraging and strengthening areas of weakness was advanced steadily. At the end of October, the debt-to-asset ratio of industrial enterprises above designated size was 55.7 percent, 0.5 percentage point lower than the same period last year. From January to November, investment in ecological protection and treatment of environment pollution, management of public utility and agriculture rose by 23.6 percent, 23.3 percent and 16.6 percent respectively, 16.4 percentage points, 16.1 percentage points and 9.4 percentage points higher than the overall investment respectively. Supply-side structural reform in Agriculture continued to deepen. While maintaining a stable sown area of grain crops this year, the cultivation of corn which had relatively large stock was reduced and the sown area of miscellaneous grain crops and beans was increased. Good grain harvests were achieved again on the  basis of structural adjustment and optimization. The total output of grain this year reached 1,235.8 billion jin, an increase of 3.3 billion jin compared with that of last year.

New growth drivers and new industries continued to develop. From January to November, the value added of high-tech industries and equipment manufacturing increased by 13.5 percent and 11.4 percent respectively year-on-year, 6.9 percentage points and 4.8 percentage points higher than that of the industries above designated size. The production capacity of industrial robots increased by 68.8 percent and that of new energy vehicles went up 46.5 percent. In the first ten months, the business revenue of strategic emerging services, producers services and science and technology services rose by 17.5 percent, 14.9 percent and 14.6 percent year-on-year respectively, 3.8 percentage points, 1.2 percentage points and 0.9 percentage point higher than that of overall service industries above designated size.

Generally speaking, the national economy in November maintained the momentum of stable and sound development, and showed strong stability and resilience. However, we should be aware that there are still many risks and uncertainties abroad, and great challenges exist for high quality development. In the next stage, we will implement fully the guidelines from the 19th CPC National Congress, take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as guide, stick to the general principle of making progress while maintaining stable performance, and apply the new vision of development. We should deepen the supply-side structural reform as per the requirement of developing a modernized economy and high quality development, coordinate effort to maintain stable growth, promote reform, make structural adjustments, improve living standards, and guard against risks in a bid to facilitate sound and sustained economic and social 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.