National Economy Stayed Stable with Sound Growing Momentum in July

National Bureau of Statistics of China

14 August 2018

In July, 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 generally steady and sound performance with a good momentum, featuring stable production and demands, steady employment and consumer price, continuously optimized economic structure and improved economic performance.

1. The Industrial Production was Generally Stable with Optimized Economic Structure and Improved Economic Performance.

In July, the real growth of the total value added of the industrial enterprises above designated size was 6.0 percent year-on-year, growing at the same speed as last month. From January to July, the value added of the industrial enterprises above designated size grew by 6.6 percent year on year. An analysis by types of ownership showed that in July, the value added of the state holding enterprises went up by 6.2 percent year on year; collective enterprises down by 2.8 percent; share-holding enterprises up by 6.0 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 6.1 percent. In terms of sectors, in July, the value added of the mining increased by 1.3 percent on a year-on-year base, the manufacturing grew by 6.2 percent and the production and supply of electricity, thermal power, gas and water grew by 9.0 percent. The industrial structure was optimized and the innovation was accelerated. From January to July, the value added of high-tech manufacturing, equipment manufacturing and strategic emerging industry grew by 11.6 percent, 9.0 percent and 8.6 percent year on year respectively, 5.0 percentage points, 2.4 percentage points and 2.0 percentage points higher than that of the industrial enterprises above the designated size. The new industrial products grew rapidly. From January to July, the production of new energy vehicles, industrial robots, and integrated circuits grew by 68.6 percent, 21.0 percent and 14.5 percent year on year. The profits for enterprises increased fast. In the first half, the total profits registered by industrial enterprises above the designated size was 3,388.2 billion yuan, up by 17.2 percent year on year, 0.7 percentage point faster than that in the first five months; of the total, the profits of state holding enterprises and the share-holding enterprises increased by 31.5 percent and 21.0 percent year on year respectively. The profit rate from the principal businesses of industrial enterprises above the designated size was 6.51 percent, 0.41 percentage point higher than that of the same period last year.

2. The Service Industry Continued to Grow and the Modern Service Industry Acted as a Stronger Driving Force.

In July, the Index of Services Production increased by 7.6 percent year on year, 0.4 percentage point slower than last month. From January to July, the Index of Services Production increased by 8.0 percent year on year, growing at the same speed as that in the first half of 2018. Specifically, information transmission, software and information technology services, and leasing and business services grew by 37.3 percent and 11.2 percent year on year respectively. In the first half, the business revenue of service enterprises above the designated size grew by 12.7 percent year on year. Specifically, the business revenue of strategic emerging service industry, science and technology service industry and high-tech service industry grew by 16.7 percent, 16.4 percent and 14.8 percent year on year, or 4.0 percentage points, 3.7 percentage points and 2.1 percentage points higher than that of the service enterprises above the designated size. The profits for service enterprises above the designated size grew by 22.6 percent year on year, among which, the producer services and the personal services grew by 23.5 percent and 34.5 percent respectively.

3. The Market Sales was Generally Stable and the Upgraded Consumption Maintained a Rapid Growth.

In July, the total retail sales of consumer goods reached 3,073.4 billion yuan, a year-on-year rise of 8.8 percent, 0.2 percentage point slower than last month. From January to July, the total retail sales of consumer goods increased by 9.3 percent year on year, 0.1 percentage point slower than the first six months. Analyzed by different areas, in July, the retail sales in urban areas reached 2,638.8 billion yuan, up by 8.6 percent year-on-year, and the retail sales in rural areas stood at 434.5 billion yuan, up by 10.1 percent. Grouped by consumption patterns, the income of the catering was 334.3 billion yuan, up by 9.4 percent year on year; and the retail sales of goods were 2,739.1 billion yuan, up by 8.7 percent. The sales of upgraded consumer goods witnessed fast growth. From January to July, among the retail sales of enterprises above designated size, the retail sales of cosmetics and communication equipments increased by 13.3 percent and 10.4 percent year on year respectively, or 4.0 percentage points and 1.1 percentage points faster that that of the total retail sales of consumer goods. The new consumption developed fast. From January to July, the online retail sales reached 4,786.3 billion yuan, up by 29.3 percent year on year. Of the total, the online retail sales of physical goods stood at 3,646.1 billion yuan, up by 29.1 percent, accounting for 17.3 percent of the total retail sales of consumer goods, 3.5 percentage points higher than that of the same period last year. The online retail sales of non-physical goods were 1,140.2 billion yuan, up by 30.1 percent.

4. The Investment Structure Continued to Optimize and Private Investment as well as the Investment in Manufacturing Grew Faster.

From January to July, the investment in fixed assets (excluding rural households) was 35,579.8 billion yuan, a year-on-year growth of 5.5 percent, 0.5 percentage point slower than the first six months. Specifically, private investment reached 22,264.9 billion yuan, up by 8.8 percent, 0.4 percentage point faster than the same period last year. The investment in the primary industry was up by 13.7 percent year on year; the secondary industry grew by 3.9 percent, among which the investment in manufacturing was up by 7.3 percent, 0.5 percentage point faster than the same period last year; the tertiary industry went up by 6.0 percent, among which the investment in infrastructure increased by 5.7 percent. The investment in high-tech manufacturing industry and in equipment manufacturing industry increased by 12.2 percent and 10.0 percent, 6.7 percentage points and 4.5 percentage points faster than that of the total investment. From January to July, the total investment in real estate development was 6,588.6 billion yuan, a year-on-year growth of 10.2 percent. The floor space of commercial buildings sold reached 899.90 million square meters, a year-on-year increase of 4.2 percent. The total sales of commercial buildings were 7,830.0 billion yuan, a growth of 14.4 percent year on year.

5. The Surveyed Unemployment Rate Kept Stable and the Employment Continued to Improve.

Data from Ministry of Human Resources and Social Security showed that In the first seven months, the newly increased employed people in urban areas numbered 8.80 million, 0.25 million more than the same period last year, accomplishing 80 percent of the whole year target. In July, the surveyed unemployment rate in urban areas was 5.1 percent, 0.3 percentage point higher than last month, maintaining the same speed as the same month last year. The urban surveyed unemployment rate in 31 major cities was 5.0 percent, 0.3 percentage point higher than last month and 0.1 percentage point higher than the same month last year. Specifically, the surveyed unemployed rate of major labor force aged from 25 to 59 was 4.4 percent, which was the same as last month and continuously kept a relatively low level. The employed people in enterprises worked averagely 46 hours per week, 0.1 hour more than last month.

6. Consumer Price Grew Mildly and the Growth for Prices of Industrial Products Slowed Down.

In July, the consumer price went up by 2.1 percent year on year, 0.2 percentage point higher than last month, up by 0.3 percent month-on-month. Grouped by commodity categories, prices for food, tobacco and alcohol went up by 1.0 percent year on year; clothing up by 1.2 percent; housing up by 2.4 percent; articles and services for daily use up by 1.6 percent; transport and communication up by 3.0 percent; education, culture and recreation up by 2.3 percent; medical services and health care up by 4.6 percent; other articles and services up by 1.2 percent. From January to July, the consumer price was up by 2.0 percent year on year. In July, the producer prices for industrial products went up by 4.6 percent year on year, 0.1 percentage point slower than last month, up by 0.1 percent month on month. The purchasing prices for industrial producers went up by 5.2 percent year-on-year and 0.1 percent month-on-month. From January to July, the producer prices for industrial products went up by 4.0 percent year on year and the purchasing prices for industrial producers were up by 4.5 percent year on year.

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

The total value of imports and exports in July was 2,602.8 billion yuan, an increase of 12.5 percent year on year, 8.2 percentage points faster than last month. The total value of exports was 1,389.9 billion yuan, up by 6.0 percent, 3.0 percentage point faster than last month; the total value of imports was 1,212.9 billion yuan, an increase of 20.9 percent, 14.9 percentage points faster than last month. The trade balance was 177.0 billion yuan in surplus, 83.9 billion yuan less than last month. In the first seven months, the total value of imports and exports was 16,720.9 billion yuan, a year-on-year increase of 8.6 percent. The total value of exports was 8,894.4 billion yuan, up by 5.0 percent, and the total value of imports was 7,826.4 billion yuan, up by 12.9 percent. In July, the export delivery value of industrial enterprises above designated size reached 1,031.7 billion yuan, a year-on-year increase of 8.7 percent, 5.9 percentage points faster than last month. From January to July, the export delivery value of the industrial enterprises above designated size reached 6,744.0 billion yuan, a year-on-year increase of 6.0 percent.

8. The Supply-Side Structural Reform Continued to Deepen and the Market Expectation Stayed Positive. 

The efforts of improving weak links, reducing costs and deleveraging continued to delivering results. The investment in weak areas increased fast. In the first seven months, the investment in the management of ecological protection and treatment of environment pollution and the investment in agriculture increased by 34.1 percent and 15.5 percent respectively, or 28.6 percentage points and 10.0 percentage points higher than the total investment respectively. The cost for enterprises continued to decrease. In the first six months, the cost for per-hundred-yuan turnover of principal business of the industrial enterprises above the designated size was 84.42 yuan, 0.37 yuan less than the same period last year. The asset-liability ratio dropped. By the end of June, the asset-liability ratio of the industrial enterprises above the designated size was 56.6 percent, 0.4 percentage point lower than the same period last year. The market expectation stayed positive. In July, the PMI Composite Output Index was 53.6 percent. The Manufacturing Purchasing Managers’ Index was 51.2 percent, maintaining above 51.0 percent for five months in a row. The Business Activity Index for Non-Manufacturing Industries was 54.0 percent, stayed within the expansion range of 54.0 percent and above for eleven months in a row.

Generally speaking, the national economy continued to stay stable with a good growing momentum in July. However, we must be fully aware of the severe and complex environment both at home and abroad, as well as the lurking uncertainties behind the stable economy. 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 CPC National Congress as well as the spirit of the 2nd and 3rd plenary sessions of the CPC Central Committee, follow the work arrangements for the second half of 2018 made at the Central Economic Working Conference by the Political Bureau of CPC Central Committee and implement the decisions and arrangements made by the CPC Central Committee and the State Council. We should follow the general working guideline of making progress while maintaining stability, focus on the supply-side structural reform, strive to win the “three tough battles”, step up the reform and opening up, and ensure the implementation of policies. We should also focus on the stability in areas like employment, financial sector, foreign trade, foreign investment and market expectation, ensure the economy running within the reasonable range, take a down-to-earth approach in all efforts, promote the high-quality development, and endeavor to maintain stable and healthy economic development as well as the social harmony and stability.  

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.

As industrial enterprises above the designated size change every year, to ensure the data comparability between years, the coverage of the data of 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, cancelled 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 was 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. 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。