National Economy Maintained Steady Performance with Upward Momentum

National Economy Maintained

Steady Performance with Upward Momentum

National Bureau of Statistics of China

14 November 2016

In October, the national economy, under the continuing effect of a series of policies, has maintained the momentum of moderate but stable development with quality improved. Production demand was generally stable; the employment kept steady and the market supply and demand improved. The policy “cutting overcapacity, reducing inventory, deleveraging, lowering costs and strengthening weak links” continued to take effect, the growth of new driving forces accelerated, and positive factors continued to emerge.

1. Industry Increased Steadily with Enterprise Benefit Improved.

In October, the total value added of the industrial enterprises above designated size was up by 6.1 percent year-on-year at comparable prices, the same as that in September, or 0.5 percentage point faster than that in the same period of last year. An analysis by types of ownership showed that the value added of state holding enterprises went up by 3.2 percent; collective enterprises down by 3.8 percent; share-holding enterprises up by 6.8 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan up by 4.8 percent. The value added of mining industry was down by 2.2 percent year-on-year; manufacturing up by 6.7 percent and the production and supply of electricity, heat, gas and water up by 7.9 percent. The industrial structure continued to be optimized. The value added of high-tech industry and equipment manufacturing industry grew by 10.5 percent and 10.1 percent respectively, 4.4 and 4.0 percentage points higher than that of the industrial enterprises above designated size. The sales ratio of industrial enterprises above designated size was 97.9 percent. The total value added of the industrial enterprises above the designated size was up by 0.50 percent month-on-month. In the first ten months of the year, the total value added of the industrial enterprises above designated size was up by 6.0 percent year-on-year.

In the first nine months of this year, the profits made by industrial enterprises above designated size stood at 4,638.1 billion yuan, up by 8.4 percent year-on-year, the same as that of the first eight months. The costs for per-hundred-yuan turnover of primary activities of the industrial enterprises above designated size reached 85.87 yuan, decreased by 0.17 yuan compared with that in the same period of last year. The profit rate from primary activities was 5.67 percent, 0.25 percentage point higher than that in the same period of last year. At the end of September, inventory of finished goods of industrial enterprises above designated size dropped by 0.8 percent year-on-year, marking the sixth straight month of decline. Debt to asset ratio was 56.3 percent, 0.6 percentage point lower than that in the same period of last year.

2. Investment in Fixed Assets Grew Steadily and Investment Structure Continued to be Optimized.

In the first ten months, the investment in fixed assets (excluding rural households) was 48,442.9 billion yuan, a year-on-year growth of 8.3 percent, 0.1 percentage point higher than that in the first nine months of this year. Of the total, the investment by state holding enterprises reached 17,186.9 billion yuan, an increase of 20.5 percent; private investment reached 29,772.5 billion yuan, up by 2.9 percent, 0.4 percentage point higher than that in the first nine months of this year and accounting for 61.5 percent of the total investment. The investment in the primary industry reached 1,536.6 billion yuan, up by 22.0 percent year-on-year; that in the secondary industry was 18,913.6 billion yuan, up by 2.9 percent; and that in the tertiary industry was 27,992.6 billion yuan, up by 11.5 percent, among which the investment in infrastructure reached 9,492.8 billion yuan, up by 19.4 percent. The investment in the high-tech industry went up by 16.1 percent year-on-year, 7.8 percentage points higher than the total investment growth. The funds in place for investment were 49,667.5 billion yuan, up by 5.4 percent year-on-year. Specifically, the state budget went up by 16.1 percent, domestic loans grew by 7.9 percent, self-raising funds decreased by 0.3 percent and foreign investment was down by 20.2 percent. The total planned investment in newly-started projects was 41,091.3 billion yuan, a year-on-year increase of 21.8 percent. The investment in fixed assets (excluding rural households) went up by 0.58 percent month-on-month in October.

3. The Growth Rate of Investment in Real Estate Development Picked up Slightly and the Floor Space of Commercial Buildings for Sale Continued to Decrease.

In the first ten months of 2016, the total investment in real estate development was 8,397.5 billion yuan, up by 6.6 percent year-on-year, which was 0.8 percentage point higher than that in the first nine months of this year or 4.6 percentage points higher over that in the same period of last year. Of the total, the investment in residential buildings went up by 5.9 percent. Floor space of houses newly started was 1,373.75 million square meters, up by 8.1 percent year-on-year. Specifically, the floor space of residential buildings newly started increased by 8.3 percent. The floor space of commercial buildings sold reached 1,203.38 million square meters, up by 26.8 percent year-on-year. Of this total, that of residential buildings went up by 27.0 percent. The sales of commercial buildings were 9,148.2 billion yuan, grew by 41.2 percent year-on-year. Of this total, that of residential buildings grew by 42.6 percent. The land space purchased by real estate development enterprises was 168.73 million square meters, down by 5.5 percent year-on-year. By the end of October, the floor space of commercial buildings for sale reached 695.22 million square meters, 900 thousand square meters less than that at the end of September, a decline for the eighth consecutive month. The funds in place for real estate development enterprises in the first ten months reached 11,726.1 billion yuan, up by 15.5 percent year-on-year.

4. Market Sales Continued to Grow with Increased Share of Online Retailing.

In October, the total retail sales of consumer goods reached 3,111.9 billion yuan, a nominal year-on-year increase of 10.0 percent (a real growth of 8.8 percent after deducting price factors), which was 0.7 percentage point lower than that in the previous month. In the first ten months, the total retail sales of consumer goods went up by 10.3 percent year-on-year, maintaining a stable and rapid development trend. In October, analyzed by different areas, the retail sales in urban areas reached 2,689.3 billion yuan, up by 10.0 percent, and that in rural areas stood at 422.6 billion yuan, up by 10.3 percent. Grouped by consumption patterns, the total income of catering industry in October was 349.2 billion yuan, up by 10.0 percent year-on-year; and retail sales of goods were 2,762.8 billion yuan, up by 10.1 percent. In particular, the retail sales of units above designated size reached 1,265.3 billion yuan, up by 7.7 percent. Certain categories of upgraded consumer goods saw rapid growth; the retail sales of cultural and office goods went up by 12.7 percent; furniture up by 11.0 percent and building and decoration materials up by 12.3 percent. In October, the total retail sales of consumer goods grew by 0.71 percent month-on-month.

In the first ten months, the online retail sales reached 3,928.8 billion yuan, up by 25.7 percent year-on-year, among which the retail sales of physical goods were 3,174.0 billion yuan, an increase of 24.9 percent, accounting for 11.8 percent of the total retail sales of consumer goods, 0.1 percentage point higher than that of the first nine months, or 1.8 percentage points higher than that in the same period of last year.

5. Consumer Price Increased Mildly and Producer Prices for Industrial Products Continued to Pick up.

In October, the consumer price went up by 2.1 percent year-on-year, 0.2 percentage point higher than that in September. In the first ten months, the consumer price went up by 2.0 percent year-on-year. In October, grouped by commodity categories, prices for food, tobacco and liquor went up by 3.0 percent year-on-year; clothing up by 1.3 percent; housing up by 1.8 percent; articles and services for daily use up by 0.4 percent; transportation and communication down by 0.4 percent; education, culture and recreation up by 2.1 percent; health care up by 4.8 percent; and other articles and services up by 3.6 percent. In terms of food, tobacco and liquor prices, that for grain grew by 0.4 percent, pork by 4.8 percent and fresh vegetables by 13.0 percent. In October, the consumer price went down by 0.1 percent month-on-month.

In October, the producer prices for industrial products increased by 1.2 percent year-on-year, 1.1 percentage points higher than that in September; the prices went up by 0.7 percent month-on-month. In the first ten months, the producer prices for industrial products dropped by 2.5 percent year-on-year. In October, the purchasing prices for industrial producers increased by 0.9 percent year-on-year, or up by 0.9 percent month-on-month. In the first ten months, the prices dropped by 3.3 percent year-on-year.

6. The Decrease of Exports Narrowed down and Growth of Imports Quickened.

The total value of imports and exports in October was 2,046.5 billion yuan, a year-on-year decrease of 0.6 percent. The total value of exports was 1,185.8 billion yuan, down by 3.2 percent, 2.4 percentage points less than that in September; and that of imports was 860.6 billion yuan, up by 3.2 percent, 1.0 percentage point faster than that of September. The trade surplus was 325.2 billion yuan. In the first ten months, the total value of imports and exports was 19,555.4 billion yuan, down by 1.9 percent year-on-year. The total value of exports was 11,220.5 billion yuan, down by 2.0 percent; and that of imports was 8,334.9 billion yuan, down by 1.8 percent.

In October, the export delivery value of the industrial enterprises above designated size reached 1,053.7 billion yuan, down by 0.2 percent year-on-year. In the first ten months, the export delivery value of the industrial enterprises above designated size was 9,643.5 billion yuan, the same as that in the same period of last year.

In General, the national economy maintained steady performance with upward momentum and higher quality in October. Economic transformation and upgrading was promoted, the growth of new driving forces accelerated, and the characteristics of new normal were further unveiled. Meanwhile, we should also be aware that the domestic and external conditions are still complicated and severe, our economy is facing with many instabilities and uncertainties, and the foundation for a stabilized but progressing economy should be further consolidated. In the next stage, we should continue to adhere to the general working guideline of making progress while maintaining stability, appropriately expand the aggregate demand, unswervingly advance the supply-side structural reform, encourage public participation in starting businesses and making innovations, intensify our efforts in policy implementation, and consolidate factors that will trigger positive changes to ensure the stable and healthy economic growth.

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 primary activities over 20 million yuan.

3.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 primary activities 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 and services).

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

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

5. 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.