National Economic Development Continued to Show Resilience in August
National Bureau of Statistics of China
15 September 2021
In August, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at the core, all regions and departments implemented the decisions and arrangements made by the CPC Central Committee and the State Council and coordinated both the epidemic prevention and control and the economic and social development. As a result, the national economy maintained the trend of recovery with the transformation and upgrading forging ahead, vitality of innovation unlocked, employment and prices generally stable, quality and efficiency improved, and major macro indicators staying within a reasonable range.
1. Industrial Production Maintained Stable Growth and High-tech Manufacturing Grew Faster.
In August, the total value added of the industrial enterprises above the designated size grew by 5.3 percent year on year, an average two-year growth of 5.4 percent, or 0.2 percentage points slower than that of July; and the month-on-month growth was 0.31 percent. In terms of sectors, the value added of mining was up by 2.5 percent, the manufacturing up by 5.5 percent, and the production and supply of electricity, heat power, gas and water up by 6.3 percent year on year. The value added of high-tech manufacturing grew by 18.3 percent year on year, 2.7 percentage points faster than July, or an average two-year growth of 12.8 percent, 0.1 percentage points faster. In terms of products, the output of new energy vehicles, industrial robots, integrated circuits and micro computer equipment went up by 151.9 percent, 57.4 percent, 39.4 percent and 12.4 percent year on year respectively with the average two-year growths all exceeding 12 percent. An analysis by types of ownership showed that, the value added of state holding enterprises went up by 4.6 percent year on year; that of share-holding enterprises up by 6.1 percent year on year; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 3.4 percent year on year; and that of private enterprises up by 5.2 percent year on year. In the first eight months, the total value added of the industrial enterprises above the designated size went up by 13.1 percent year on year with an average two-year growth of 6.6 percent. Specifically, the value added of the manufacturing of medicine and that of electrical machinery and apparatus went up by 30.0 percent and 23.8 percent year on year. In August, the Manufacturing Purchasing Managers’ Index stood at 50.1 percent, staying above the threshold for eighteen consecutive months. The Production and Operation Expectation Index registered 57.5 percent.
In the first seven months, the total profits made by the industrial enterprises above the designated size reached 4,924.0 billion yuan, an increase of 57.3 percent year on year, with an average two-year growth of 20.2 percent. The profit rate of the business revenue of industrial enterprises above the designated size was 7.09 percent, 1.43 percentage points higher than that of the first seven months in 2020.
2. Service Sector Continued to Recover and Modern Services Like Information Transmission, Software, and Information Technology Services Grew Fast.
In August, the Index of Services Production increased by 4.8 percent year on year, with an average two-year growth of 4.4 percent, 1.2 percentage points slower than July. The Index of Services Production of information transmission, software, and information technology services went up by 16.2 percent year on year and that of leasing and business services up by 11.4 percent. In the first eight months, the Index of Services Production increased by 17.7 percent year on year, with an average two-year growth of 6.2 percent. In terms of major sectors, the Sub-Index of Services Production of eight sectors all maintained a year-on-year growth, of which, the Index of Services Production of information transmission, software, and information technology services grew by 20.9 percent year on year. In the first seven months, the business revenue of services enterprises above the designated size grew by 27.8 percent year on year with the average two-year growth reaching 10.9 percent. Of this total, the business revenue of information transmission, software, and information technology services and that of scientific research and technology services grew by 24.2 percent and 21.1 percent year on year with the average two-year growths reaching 17.0 percent and 11.8 percent respectively. In August, the Business Activity Index for services was 45.2 percent. In terms of sectors, the Business Activity Index for wholesale, monetary and financial services, and capital market services stayed above 54.0 percent. The Business Activity Expectation Index for services stood at 57.3 percent, staying within high expansion range.
3. Market Sales Continued to Grow and Consumption of Upgraded Goods was Active.
In August, the total retail sales of consumer goods reached 3,439.5 billion yuan, up by 2.5 percent year on year, an average two-year growth of 1.5 percent, 2.1 percentage points slower than July; and the month-on-month growth was 0.17 percent. In the first eight months, the total retail sales of consumer goods reached 28,122.4 billion yuan, up by 18.1 percent year on year, an average two-year growth of 3.9 percent. In August, analyzed by different areas, the retail sales in urban areas reached 2,995.0 billion yuan, up by 2.3 percent year on year; the retail sales in rural areas reached 444.5 billion yuan, up by 3.4 percent. Grouped by consumption patterns, the retail sales of goods was 3,093.9 billion yuan, up by 3.3 percent year on year; the income of catering was 345.6 billion yuan, down by 4.5 percent year on year. Grouped by categories, for retail sales of goods by enterprises above the designated size, 11 out of 18 categories maintained positive growth year on year. The consumption of upgraded goods remained active. The retail sales of sports and recreational articles and cultural and office appliances by enterprises above the designated size were up by 22.7 percent and 20.4 percent year on year. The basic living consumption grew fast. The retail sales of beverages, traditional Chinese and western medicines, and grain, oil and food by enterprises above the designated size grew by 11.8 percent, 10.2 percent, and 9.5 percent year on year. In the first eight months, the online retail sales reached 8,122.7 billion yuan, a year-on-year growth of 19.7 percent. Specifically, the online retail sales of physical goods were 6,634.0 billion yuan, a year-on-year growth of 15.9 percent, accounting for 23.6 percent of the total retail sales of consumer goods.
4. Investment in Fixed Assets Grew Steadily and Manufacturing and Private Investment Grew Fast.
In the first eight months, the investment in fixed assets (excluding rural households) reached 34,691.3 billion yuan, up by 8.9 percent year on year, with an average two-year growth of 4.0 percent, or 0.3 percentage points lower than that of the first seven months. In August, the investment in fixed assets grew by 0.16 percent month on month. Specifically, in the first eight months, the investment in infrastructure grew by 2.9 percent year on year, an average two-year growth of 0.2 percent, or 0.7 percentage points lower than that of the first seven months; the investment in manufacturing grew by 15.7 percent year on year, an average two-year growth of 3.3 percent, or 0.2 percentage points faster than that of the first seven months; the investment in real estate development grew by 10.9 percent year on year, an average two-year growth of 7.7 percent, or 0.3 percentage points lower than that of the first seven months. The floor space of commercial buildings sold reached 1,141.93 million square meters, up by 15.9 percent year on year; and the total sales of commercial buildings were 11,904.7 billion yuan, up by 22.8 percent year on year. By industry, the investment in the primary industry went up by 18.1 percent year on year; the secondary industry up by 12.9 percent year on year; the tertiary industry up by 6.8 percent year on year. The private investment went up by 11.5 percent year on year, an average two-year growth of 3.9 percent, 0.5 percentage points faster than that of the first seven months. The investment in high-tech industry grew by 18.9 percent year on year, an average two-year growth of 13.4 percent. Specifically, the investment in high-tech manufacturing and high-tech services grew by 25.8 percent and 6.3 percent year on year. In terms of high-tech manufacturing, the investment in manufacturing of computers and office devices and in manufacturing of aviation, aerospace vehicle and equipment grew by 48.8 percent and 45.2 percent respectively year on year. In terms of high-tech services, the investment in e-commerce services and testing services went up by 36.0 percent and 23.6 percent year on year. The investment in social sectors grew by 13.3 percent year on year with an average two-year growth of 10.7 percent. Specifically, the investment in health sector and education sector grew by 33.8 percent and 12.2 percent year on year respectively.
5. Growth of Imports and Exports of Goods was Accelerated and Trade Structure Continued to Optimize.
In August, the total value of imports and exports of goods was 3,429.3 billion yuan, up by 18.9 percent year on year, or 7.4 percentage points faster than July. The value of exports was 1,902.8 billion yuan, up by 15.7 percent year on year, and the value of imports was 1,526.5 billion yuan, up by 23.1 percent year on year. The trade balance was 376.3 billion yuan in surplus. In the first eight months, the total value of imports and exports of goods was 24,783.1 billion yuan, up by 23.7 percent year on year. The value of exports was 13,565.1 billion yuan, up by 23.2 percent year on year, and the value of imports was 11,218.1 billion yuan, up by 24.4 percent year on year. The trade structure continued to optimize. In the first eight months, the exports of mechanical and electrical products grew by 23.8 percent year on year, accounting for 58.8 percent of the total exports. The import and export of general trade accounted for 62 percent of the total value of the imports and exports, 1.6 percentage points higher than the same period of the previous year. The imports and exports by private enterprises accounted for 48.1 percent of the total imports and exports, 2.3 percentage points higher than the same period of the previous year. By the end of August, the national foreign currency reserves reached 3,232.1 billion USD, staying above 3.2 trillion USD for the fourth consecutive month.
6. Employment was Generally Stable and Urban Surveyed Unemployment Rate for the Youth Dropped.
In the first eight months, the newly increased employed people in urban areas totaled 9.38 million, accomplishing 85.3 percent of the whole-year target. In August, the urban surveyed unemployment rate was 5.1 percent, the same as that of July. The surveyed unemployment rate of population with local household registration was 5.2 percent and that of population with non-local household registration was 5.0 percent. Specifically, the surveyed unemployment rate of the population aged from 16 to 24 was 15.3 percent, 0.9 percentage points lower than that of July; and the surveyed unemployment rate of the population aged from 25 to 59 were 4.3 percent. The urban surveyed unemployment rate in 31 major cities was 5.3 percent, 0.1 percentage points higher than that of July. The employees of enterprises worked 47.5 hours per week on average.
7. Consumer Price was Generally Stable and the Increase of the Producer Prices for Industrial Products Expanded.
In August, the consumer price (CPI) went up by 0.8 percent year on year, 0.2 percentage points slower than July; and the month-on-month growth was 0.1 percent. Grouped by commodity categories, prices for food, tobacco and alcohol went down by 2.0 percent year on year; clothing up by 0.5 percent; housing up by 1.1 percent; articles and services for daily use up by 0.6 percent; transport and communication up by 5.9 percent; education, culture and recreation up by 3.0 percent; medical services and health care up by 0.4 percent; and other articles and services down by 3.9 percent. Among the prices for food, tobacco and alcohol, the price for pork went down by 44.9 percent, fresh vegetables down by 1.5 percent, grain up by 0.8 percent and fresh fruit up by 5.0 percent. The core CPI excluding the price of food and energy went up by 1.2 percent, 0.1 percentage points slower than July. In the first eight months, the consumer price went up by 0.6 percent year on year.
In August, the producer prices for industrial products went up by 9.5 percent year on year, 0.5 percentage points faster than July, or up by 0.7 percent month on month. The purchasing prices for industrial producers went up by 13.6 percent year on year, 0.5 percentage points faster than July, and up by 0.8 percent month on month. In the first eight months, the producer prices for industrial products and the purchasing prices for industrial producers increased by 6.2 percent and 8.6 percent year on year respectively.
Generally speaking, in August, the national economy maintained the trend of recovery. However, we must be aware that the international environment is still complicated and severe. At home, it has been felt that the sporadic outbreak of COVID-19 and natural disasters such as floods had caused impact on the economy, and the foundation for the economic recovery still needs to be consolidated. At the next stage, we must take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, adhere to the arrangements and decisions made by the CPC Central Committee and the State Council, pursue the general working guideline of making progress while maintaining stability and implement the new development philosophy in a full, accurate and comprehensive way. We must further the supply-side structural reforms, accelerate the building of a new development paradigm, and effectively implement the macro policies for cross-cycle adjustment. We must consolidate and expand the achievements of the coordination of the epidemic prevention and control and the economic and social development, keep the economy within a reasonable range, and promote the high-quality development of the economy.
Notes:
1. The average two-year growth is the geometric mean of the growth with the data of the same period in 2019 as the base.
2. The growth rates 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.
3. 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 the 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, canceled 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.
4. The Index of Services Production is the change of production in the reporting period compared to the base period with the price factors deducted.
5. The scope of the total retail sales of consumer goods include all legal entities, establishments and self-employed individuals involved in retail trades or providing catering services. Specifically, businesses above the designated size include wholesale enterprises (businesses), retail enterprises (businesses) and lodging and catering enterprises (businesses) with annual revenue from principal business over 20 million yuan, 5 million yuan and 2 million yuan respectively.
As the wholesale, retail, and lodging and catering enterprises (businesses) above the designated size change every year, to ensure the data comparability between years, the coverage of the data of the same period last year used for estimating year-on-year growth rates like that of the retail sales of consumer goods by businesses above the designated size is consistent with the current period and different from the coverage of data published last year. The main reasons are as follows: every year, some enterprises (businesses) are included in the survey as they meet the threshold, while some enterprises (businesses) are removed from the survey because of downsizing. Besides, enterprises (businesses) that have newly gone into operation, been bankrupted, canceled their registrations or had their business licenses revoked also cause impact.
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 goods).
The total retail sales of consumer goods include the online retail sales of physical goods, but not the non-physical goods.
6. The data of investment in fixed assets of the same period last year are revised according to the statistical law enforcement and inspection, and the regulations of statistical programmes. The growth rates are calculated on a comparable basis.
7. Data of imports and exports are from the General Administration of Customs. Data of newly increased employed people in urban areas are from the Ministry of Human Resources and Social Security.
8. Employed people refer to people aged 16 and above who have the ability to work and engage in gainful employment for remuneration payment or business income.
9. 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.