The Economic Performance Continued to Stay Stable with Sound Momentum in May

National Bureau of Statistics of China

14 June 2018

In May, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, all regions and departments implemented the decisions and arrangements made by the CPC Central Committee and the State Council and the national economy maintained a steady and sound performance with a good momentum, featuring stable production and demands, continuously improved employment, mild price increase and better supply and demand structure and profit for enterprises.

1. The Industrial Production was Generally Stable and the Service Industry Developed Rapidly.

In May, the real growth of the total value added of the industrial enterprises above designated size was 6.8 percent year-on-year, 0.2 percentage point slower than last month, or 0.3 percentage point faster than the same month last year. An analysis by types of ownership showed that the value added of the state holding enterprises went up by 8.1 percent year on year; collective enterprises down by 2.9 percent; share-holding enterprises up by 6.1 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 8.4 percent. In terms of sectors, the value added of the mining increased by 3.0 percent on a year-on-year base, the manufacturing grew by 6.6 percent and the production and supply of electricity, thermal power, gas and water grew by 12.2 percent. From January to May, the value added of the industrial enterprises above designated size grew by 6.9 percent year on year, maintaining the same speed as the first four months.

In May, the Index of Services Production increased by 8.1 percent year on year, 0.1 percentage point faster than last month. Specifically, information transmission, software and information technology services, and leasing and business services maintained rapid growth. From January to May, the Index of Services Production increased by 8.1 percent year on year, 0.1 percentage point faster than the first four months.

2. The Consumption Demands Continued to Upgrade and the Investment in Manufacturing Accelerated.

In May, the total retail sales of consumer goods reached 3,035.9 billion yuan, a year-on-year rise of 8.5 percent, 0.9 percentage point slower than last month. Analyzed by different areas, the retail sales in urban areas reached 2,609.2 billion yuan, up by 8.3 percent year-on-year, and the retail sales in rural areas stood at 426.7 billion yuan, up by 9.6 percent. Grouped by consumption patterns, the income of the catering was 332.1 billion yuan, up by 8.8 percent year on year; and the retail sales of goods were 2,703.8 billion yuan, up by 8.4 percent. The sales of upgraded consumer goods witnessed fast growth. The sales of communication equipments, cosmetics and  petroleum and related products of enterprises above designated size increased by 12.2 percent, 10.3 percent and 14.0 percent year on year respectively. From January to May, the total retail sales of consumer goods increased by 9.5 percent year on year, 0.2 percentage point slower than the first four months.

From January to May, the investment in fixed assets (excluding by rural households) was 21,604.3 billion yuan, a year-on-year growth of 6.1 percent, 0.9 percentage point slower than the first four months. Specifically, private investment reached 13,439.9 billion yuan, up by 8.1 percent, 0.3 percentage point slower than the first four months and 1.3 percentage points higher than the same period last year. The investment in the primary industry was up by 15.2 percent year on year; the secondary industry grew by 2.5 percent, among which the investment in manufacturing was up by 5.2 percent, 0.4 percentage point faster than the first four months, the tertiary industry went up by 7.7 percent, among which the investment in infrastructure increased by 9.4 percent. The investment in high-tech manufacturing industry and equipment manufacturing increased by 9.7 percent and 8.2 percent, 1.8 percentage points and 0.3 percentage point faster the first four months. From January to May, the total investment in real estate development was 4,142.0 billion yuan, a year-on-year growth of 10.2 percent. The floor space of commercial buildings sold reached 564.09 million square meters, a year-on-year increase of 2.9 percent. The total sales of commercial buildings were 4,877.8 billion yuan, a growth of 11.8 percent year on year.

3. Employment Continued to Improve and the Consumer Price was Stable.

In May, the surveyed unemployment rate in urban areas was 4.8 percent, 0.1 percentage point lower than last month and 0.1 percentage point lower than the same month last year. The urban surveyed unemployment rate in 31 major cities were 4.7 percent, the same as last month and 0.1 percentage point lower than the same month last year.

In May, the consumer price went up by 1.8 percent year on year, maintaining the same speed as last month, down by 0.2 percent month-on-month. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 0.7 percent year on year; clothing up by 1.1 percent; housing up by 2.2 percent; articles and services for daily use up by 1.5 percent; transport and communication up by 1.8 percent; education, culture and recreation up by 1.9 percent; medical services and health care up by 5.1 percent; other articles and services up by 1.0 percent. From January to May, the consumer price was up by 2.0 percent year on year. In May, the producer prices for industrial products went up by 4.1 percent year on year, 0.7 percentage point faster than last month, up by 0.4 percent month on month. The purchasing prices for industrial producers went up by 4.3 percent year-on-year and up 0.3 percent month-on-month. From January to May, the producer prices for industrial products went up by 3.7 percent year on year and the purchasing prices for industrial producers were up by 4.2 percent year on year.

4. The Growth of Import and Export Accelerated and the Trade Surplus was Narrowed.

The total value of imports and exports in May was 2,526.0 billion yuan, an increase of 8.6 percent year on year, 1.5 percentage points faster than last month. The total value of exports was 1,341.3 billion yuan, up by 3.2 percent, 0.3 percentage point slower than last month; the total value of imports was 1,184.8 billion yuan, an increase of 15.6 percent, 4.0 percentage points faster than last month. The trade balance was 156.5 billion yuan in surplus, 23.2 billion yuan less than last month. In the first five months, the total value of imports and exports was 11,632.0 billion yuan, a year-on-year increase of 8.8 percent. The total value of exports was 6,140.9 billion yuan, up by 5.5 percent, and the total value of imports was 5,491.1 billion yuan, up by 12.6 percent. In May, the export delivery value of industrial enterprises above designated size reached 1,014.2 billion yuan, a year-on-year increase of 6.9 percent, 2.7 percentage points faster than last month. From January to May, the export delivery value of the industrial enterprises above designated size reached 4,676.5 billion yuan, a year-on-year increase of 6.4 percent.

5. The Supply-Side Structural Reform was Deepened and the New Driving Forces were Booming. 

Ad hoc checks on cutting overcapacity of the steel industry and preventing the reemergence of substandard steel were carried out and the efforts to cut structural overcapacity were pushed forward in an orderly manner. The micro leverage ratio continued to decrease. By the end of April, the debt-to-asset ratio of the industrial enterprises above designated size was 56.5 percent, 0.7 percentage point lower on a year-on-year base. The inventory of commercial buildings continued to decrease. By the end of May, the floor space of commercial buildings for sale was 560.10 million square meters, 6.77 million square meters less than the end of last month, a decrease of 15.2 percent year-on-year. The cost for businesses continued to decrease. In the first four months, the cost of per-hundred-yuan revenue from principal business of the industrial enterprises above designated size was 84.52 yuan, 0.21 yuan less than the same period last year. The investment in the areas of weakness grew rapidly. From January to May, the investment in ecological protection and treatment of environmental pollution, agriculture and management of public utility increased by 36.7 percent, 16.1 percent and 8.6 percent year on year, 30.6 percentage points, 10.0 percentage points and 2.5 percentage points faster than the total investment respectively.

New industries grew rapidly. In May, the value added of high-tech industries and equipment manufacturing increased by 12.3 percent and 9.4 percent year on year, 5.5 and 2.6 percentage points faster than the industrial enterprises above designated size. New products grew fast. In May, the production of new energy vehicles was up by 56.7 percent year on year, integrated circuits by 17.2 percent and industrial robots by 35.1 percent. New types of business were booming. In the first five months, the online retail sales reached 3,269.1 billion yuan, a year-on-year growth of 30.7 percent. Specifically, the online retail sales of physical goods were 2,481.9 billion yuan, an increase of 30.0 percent, accounting for 16.6 percent of the total retail sales of consumer goods; the online retail sales of non-physical goods was 787.2 billion yuan, an increase of 32.8 percent.

6. Enterprise Performance was Improved and Expectation for Development Stayed Positive.

The profit of enterprises grew fast. From January to April, the total profit made by the industrial enterprises above designated size was 2,127.2 billion yuan, up by 15.0 percent year on year, 3.4 percentage points faster than the first three months; the profit rate of principal business was 6.24 percent, 0.24 percentage point higher than the same period last year. From January to April, the business revenue of the service enterprises above designated size increased by 13.8 percent year-on-year, 0.2 percentage point faster than the first three months; the business revenue of strategic emerging services, science and technology services and high-tech services increased by 18.2 percent, 17.8 percent and 16.0 percent year on year respectively, 4.4 percentage points, 4.0 percentage points and 2.2 percentage points faster than the service enterprises above designated size.

The market expectation continued to improve. In May, the PMI Composite Output Index was 54.6 percent, 0.5 percentage point higher than last month, which was the highest of the year. The Manufacturing Purchasing Managers’ Index was 51.9 percent, 0.5 percentage point higher than last month, or 0.7 percentage point higher than the same month last year, which was the highest level since last October. The Business Activity Index for Non-Manufacturing Industries was 54.9 percent, 0.1 percentage point higher than last month, or 0.4 percentage point higher than the same month last year.

Generally speaking, the national economy has maintained a steady and sound performance with a good momentum in May. However, we must be aware that the external instabilities and uncertainties are increasing, the problems of unbalanced and inadequate development in China are acute and the foundation for the economy to maintain the sound momentum needs to be strengthened. We should take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, carry out the spirit of the 19th National Congress of the Communist Party of China and the Central Economic Working Conference and implement the arrangements of the Report on the Work of the Government. We should follow the general working guideline of making progress while maintaining stability, focus on the supply-side structural reform, coordinate the efforts in stabilizing growth, stimulating reform, adjusting structure, benefiting people’s livelihood and fending off risks, strengthen the internal forces of economic growth and the competitiveness, actively defuse risks and promote the high-quality development of the economy.

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 principal business over 20 million yuan.

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. Enterprises above the 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 data for the total retail sales of consumer goods of the same period last year have been revised according to the results of the third national agricultural census and related regulations and the growth rates are calculated on a comparable base.

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. virtue 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. 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。