Overall Economic Performance Continued to Stay Stable with Sound Momentum in October

In October, encouraged by the success of the 19th CPC National  Congress, all regions and departments implemented the decisions and arrangements  made by the CPC Central Committee and the State Council and coordinated the  efforts in the reform and opening up and the economic and social development. As  a result, the economy was generally stable, the structural adjustment was  deepened, the shifting from the old driving forces to the new ones was  accelerated, the quality and efficiency were enhanced and people’s life  continued to improve. The national economy has maintained stable performance  with improved quality and sound development momentum. 

1. The  Industrial Production was Generally Steady and the Profit of Enterprises  Continued to Improve. 

In October, the real growth of the total value added of the  industrial enterprises above designated size was 6.2 percent compared with a  year ago, 0.4 percentage point slower than last month, or 0.1 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 6.6 percent  year on year; collective enterprises up by 3.6 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 6.5 percent. In terms of  sectors, the value added of the mining decreased by 1.3 percent on a  year-on-year base, the manufacturing grew by 6.7 percent and the production and  supply of electricity, thermal power, gas and water grew by 9.2 percent. The  sales-output ratio of the industrial enterprises above designated size reached  97.8 percent. From January to October, the value added of the industrial  enterprises above designated size grew by 6.7 percent year on year, the same as  that of the first nine months and 0.7 percentage point faster than the same  period last year.

From January to September, the total profit made by industrial  enterprises above designated size was 5,584.6 billion yuan, up by 22.8 percent  year on year, 1.2 percentage points faster than the first eight months, or 14.4  percentage points faster than the same period last year. The profit rate of  principal business of industrial enterprises above designated size was 6.17  percent, 0.51 percentage point higher year on year.

2. The  Service Sector Maintained Fast Growth and the Business Activity Index Continued  to Increase. 

In October, the index of services production increased by 8.0 percent  year on year, 0.3 percentage point slower than last month and 0.2 percentage  point faster than the same month last year. Specifically, information  transmission, software and information technology services, and leasing and  business services maintained double-digit growth. From January to October, the  index of services production increased by 8.2 percent year on year, 0.1  percentage point faster than the same period last year. From January to  September, the business revenue of service enterprises above designated size  increased by 13.6 percent year-on-year, 0.1 percentage point faster than the  first eight months; the operating profit rate of service enterprises above  designated size increased by 31.4 percent year on year, 8.6 percentage points  faster than the first eight months. 

In October, the business activity index for services was 53.5  percent, maintaining within the range of expansion. Specifically, the business  activity index for sectors like lodging, retail sales, air transport, postal  services, telecommunication, broadcast, television and satellite transmission  services, and internet, software and  information technology  services kept within the expansion range of 55.0 percent and above. From the  perspective of market demand, the new order index for the service industry was  50.5 percent, maintaining within the expansion range for six months in a roll.   

3. The  Investment in Fixed Assets was Generally Steady and the Investment Structure  Continued to be Optimized.

From January to October, the investment in fixed assets (excluding  rural households) was 51,781.8 billion yuan, a year-on-year growth of 7.3  percent, 0.2 percentage point slower than the first nine months. Specifically,  the investment by the state holding enterprises reached 18,988.1 billion yuan, a  rise of 10.9 percent; private investment reached 31,373.4 billion yuan, up by  5.8 percent, accounting for 60.6 percent of the total investment. The investment  in the primary industry was 1,709.6 billion yuan, up by 13.1 percent year on  year; the secondary industry 19,353.3 billion yuan, up by 2.7 percent, among  which the investment in manufacturing was 15,885.6 billion yuan, up by 4.1  percent; the tertiary industry 30,718.9 billion yuan, an increase of 10 percent.  The investment structure continued to be optimized. The investment in  infrastructure was 11,310.3 billion yuan, an increase of 19.6 percent. The  investment in high-tech manufacturing industry increased by 16.8 percent, 9.5  percentage points faster than the total investment. The investment in  energy-intensive manufacturing decreased by 2.2 percent year on year. The funds  in place for investment in fixed assets were 51,459.7 billion yuan, up by 3.6  percent year on year, 0.3 percentage point faster than the first nine months.  The total investment in newly-started projects was 42,654.1 billion yuan, an  increase of 3.8 percent year on year, 1.4 percentage points faster than the  first nine months.

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

From January to October, the total investment in real estate  development was 9,054.4 billion yuan, a year-on-year growth of 7.8 percent, 0.3  percentage point slower than the first nine months. In particular, the  investment in residential buildings went up by 9.9 percent. The floor space of  buildings newly started was 1,451.27 million square meters, up by 5.6 percent  year on year. Specifically, the floor space of residential buildings newly  started went up by 9.6 percent. The floor space of commercial buildings sold  reached 1,302.54 million square meters, a year-on-year increase of 8.2 percent.  Of this total, the floor space of residential buildings sold increased by 5.6  percent. The total sales of commercial buildings were 10,299.0 billion yuan, a  growth of 12.6 percent year on year. Specifically, the sales of residential  buildings were up by 9.6 percent. The land space purchased for real estate  development was 190.48 million square meters, up by 12.9 percent year on year.  By the end of October, the floor space of commercial buildings for sale was  602.58 million square meters, 8.82 million square meters less than that at the  end of September. The funds in place for real estate development enterprises  from January to October reached 12,594.1 billion yuan, up by 7.4 percent year on  year. 

5. Market  Sales Grew Fast and Steadily and Online Retailing Maintained a Strong Momentum.  

In October, the total retail sales of consumer goods reached 3,424.1  billion yuan, a year-on-year rise of 10.0 percent, 0.3 percentage point slower  than last month, maintaining the same speed as last October. Analyzed by  different areas, the retail sales in urban areas reached 2,953.7 billion yuan,  up by 9.8 percent year-on-year, and the retail sales in rural areas stood at  470.4 billion yuan, up by 11.3 percent. Grouped by consumption patterns, the  income of the catering was 385.2 billion yuan, up by 10.3 percent year on year;  and the retail sales of goods were 3,038.9 billion yuan, up by 10.0 percent. The  sales of upgraded consumer goods witnessed fast growth. In October, the sales of  sports and recreational articles and cosmetics of enterprises above designated  size increased by 19.6 percent and 16.1 percent year on year respectively. From  January to October, the total retail sales of consumer goods increased by 10.3  percent year on year, maintaining the same speed as the same period last year.  

In the first ten months, the online retail sales reached 5,535.0  billion yuan, a year-on-year growth of 34.0 percent, 8.3 percentage points  faster than the same period last year. Specifically, the online retail sales of  physical goods were 4,178.2 billion yuan, an increase of 28.8 percent,  accounting for 14.0 percent of the total retail sales of consumer goods, an  increase of 2.2 percentage points compared with the same period last year; the  online retail sales of non-physical goods was 1,356.8 billion yuan, an increase  of 52.7 percent. 

6. The  Consumer Price Increased Mildly and the Growth of Producer Prices for Industrial  Products was Stable. 

In October, the consumer price went up by 1.9 percent year on year,  0.3 percentage point faster than last month. Grouped by commodity categories,  prices for food, tobacco and alcohol went up by 0.3 percent year on year;  clothing up by 1.2 percent; housing up by 2.8 percent; articles and services for  daily use up by 1.5 percent; transport and communication up by 0.8 percent;  education, culture and recreation up by 2.3 percent; medical services and health  care up by 7.2 percent; other articles and services up by 1.8 percent. In terms  of food, tobacco and alcohol prices, prices for grain went up by 1.6 percent,  pork down by 10.1 percent and fresh vegetables up by 0.3 percent. In October,  the consumer price was up by 0.1 percent month-on-month. From January to  October, the consumer price was up by 1.5 percent year on year.

In October, the producer prices for industrial products went up by  6.9 percent year on year, maintaining the same speed as last month and up by 0.7  percent month on month. From January to October, the producer prices for  industrial products went up by 6.5 percent year on year. In October, the  purchasing prices for industrial producers were up by 8.4 percent year on year  and 0.9 percent month on month. In the first ten months, the purchasing prices  for industrial producers were up by 8.4 percent year on year.

7. The  Imports and Exports Grew Fast with Increased Share of the General Trade and  Export of Mechanical and Electrical Products. 

The total value of imports and exports in October was 2,242.5 billion  yuan, an increase of 10.2 percent year on year. The total value of exports was  1,248.5 billion yuan, up by 6.1 percent; the total value of imports was 994.0  billion yuan, an increase of 15.9 percent. The trade balance was 254.5 billion  yuan in surplus. In the first ten months, the total value of imports and exports  was 22,522.5 billion yuan, a year-on-year increase of 15.9 percent. The total  value of exports was 12,408.5 billion yuan, up by 11.7 percent, and the total  value of imports was 10,114.0 billion yuan, up by 21.5 percent. From January to  October, the import and export of general trade increased by 18.0 percent,  accounting for 56.5 percent of the total value of the imports and exports, 1.0  percentage point higher than the same period last year. The export of mechanical  and electrical products grew by 12.4 percent, taking up 57.7 percent of the  total export, 0.4 percentage point higher than the same period last year.  

In October, the export delivery value of industrial enterprises above  designated size reached 1,118.1 billion yuan, a year-on-year increase of 7.5  percent. In the first ten months, the export delivery value of industrial  enterprises above designated size reached 10,501.8 billion yuan, up by 10.5  percent on a year-on-year base. 

8. The  Supply-Side Structural Reform Continued to Deepen and the Transformation and  Upgrading Produced Significant Results.  

New progress was made in the work of cutting overcapacity, reducing  excessive inventory, deleveraging, lowering costs and strengthening areas of  weakness. The efforts in cutting overcapacity and reducing excessive inventory  achieved significant results. Specifically, the annual targets for cutting the  overcapacity of steel and coal were beaten and the production capacity of  substandard steel was cleared by 140 million tons. By the end of October, the  floor space of commercial buildings for sale reduced by 13.3 percent, 1.1  percentage points faster than the end of last month. The efforts in deleveraging  and lowering costs were making steady progress. By the end of September, the  debt-to-asset ratio of industrial enterprises above designated size was 55.7  percent, 0.6 percentage point lower than the same period last year. In the first  three quarters, the cost of per-hundred-yuan revenue from principal business of  industrial enterprises above designated size was 85.56 yuan, 0.23 yuan less than  the same period last year. The areas of weakness have been strengthened. From  January to October, the investment in ecological protection and treatment of  environmental pollution, management of public utility and agriculture increased  by 24.1 percent, 23.4 percent and 17.6 percent year on year, 16.8 percentage  points, 16.1 percentage points and 10.3 percentage points faster than the total  investment respectively.

New emerging driving forces continued to grow rapidly. From January  to October, the value added of high-tech industries and equipment manufacturing  increased by 13.4 percent and 11.5 percent year on year, 6.7 and 4.8 percentage  points faster than that of the industries above designated size. The production  of industrial robots increased by 68.9 percent year on year, the new energy  vehicle by 36.7 percent and sport utility vehicles (SUV) by 14.1 percent. In the  first three quarters, the business revenue of strategic emerging services,  producer services and science and technology services increased by 17.5 percent,  14.8 percent and 14.6 percent year on year respectively.

Generally speaking, the national economy maintained stable  performance with improved quality and sound momentum, which has laid a solid  foundation for the fulfillment of the annual economic development targets.  However, we must be aware that China is at a pivotal stage for transforming the  growth model, improving the economic structure and fostering new drivers of  growth and problems of unbalanced and insufficient economic development was  acute. In the next stage, under the guidance of the spirit of the 19th CPC  National Congress and Xi Jinping Thought on Socialism with Chinese  Characteristics for a New Era, we must strengthen our consciousness of the need  to maintain political integrity, think in big-picture terms, follow the  leadership core and keep in alignment and be more confident in the socialist  road with Chinese characteristics, our theories, our system and the Chinese  culture; apply the new vision of development, develop a modernized economy, put  quality first and give priority to efficiency; pursue supply-side structural  reform as our main task, deepen the innovation-driven development, work hard for  better quality, higher efficiency and more robust drivers of economic growth  through reform; focus on priorities, address inadequacies and shore up points of  weakness and strive to achieve better quality, more efficient, fairer and more  sustainable development.

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. To  reflect timely the monthly performance of economic activities in services  sectors, 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 reflected 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 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. 

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.