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Q1 Industrial Economy Operation Was Steady with Improvement

Submit Time:23-05-2018 | Zoom In | Zoom Out

Author:Wen Jianwu | Source:National Bureau of Statistics

Abstract:

With the deepening of supply-side structural reform, the industrial production in the whole country in Q1 showed good growth, with continual optimization of structure and improvement in efficiency, continuing the operation status of steady growth with improvement since last year, and realizing a good start.  

I. The industrial economy started well 

The growth of industrial production accelerated. In Q1, the added value of industrial enterprises above the designated size in the whole country saw a year-on-year increase of 6.8%, 0.6 percentage points higher than that of Q4 last year and 0.2 percentage points higher than 2017. More sectors realized growth. In Q1, 37 of the 41 major industrial sectors maintained the growth in added value, accounting for 90.2% of the total, higher than that of 2017. Among them, electronic, pharmaceutical, special equipment, tobacco, gas production and supply sectors achieved two-digit growth.  

The industrial structure was continually optimized. The high-tech manufacturing industry maintained two-digit growth, and the equipment manufacturing industry and consumer goods manufacturing industry grew rapidly. In Q1, the added value of high-tech manufacturing industry grew by 11.9% on a year-on-year, 5.1 percentage points higher than that of the industrial enterprises above the designated size; and the growth rate was 8.8% in equipment manufacturing industry and 7.7% in consumer goods manufacturing industry, respectively 2 and 0.9 percentage points higher than that of the industrial enterprises above the designated size. Rapid growth was achieved in emerging products such as industrial robot, new energy automobile and integrated circuit.  

Enterprises realized fairly rapid growth of profit. In January and February, industrial enterprises above the designated size realized total profit of 968.9 billion yuan, a year-on-year increase of 16.1%, maintaining rapid growth on the basis of the fairly rapid growth rate of profit in the same period of previous year.  

II. Results of supply-side structural reform were demonstrated 

Apparent effect presented in cutting overcapacity. In Q1, the effect of cutting overcapacity policy was further demonstrated, and the utilization rate of industrial production capacity increased. In Q1, the industrial production capacity utilization rate in the whole country was 76.5%, a year-on-year increase of 0.7 percentage points, at the highest level in the same period since 2013. 24 of the 41 major industrial sectors increased the production capacity utilization rate over the previous year. Among them, the production capacity utilization rate in coal mining and dressing sector was 71.2%, a year-on-year increase of 5.8 percentage points; and that in ferrous smelting and processing sector was 76.9%, a year-on-year increase of 3.2 percentage points.  

The asset-liability ratio was further lowered. At the end of February, the asset-liability ratio of industrial enterprises above designated size was 56.3%, a decrease of 0.8 percentage points on a year-on-year basis.  

The unit cost kept on decreasing. In January and February, the cost and expenses per 100 yuan primary operation business revenue of industrial enterprises above the designated size was 92.4 yuan, a year-on-year decrease of 0.27 yuan; and the cost per 100 yuan primary operation business revenue was 83.98 yuan, a year-on-year decrease of 0.33 yuan.  

Turnover of the finished product inventory accelerated. At the end of February, the finished product inventory turnover period in industrial enterprises above the designated size was 17.4 days, 0.2 days less than that at the same time previous year.  

III. Production and operation expectation of enterprises is stable with improvement 

The questionnaire survey results for industrial enterprises above the designated size showed that enterprises predicting optimistic operation conditions in Q2 accounted for 40.4%, 2.2 percentage points higher than that of the same period last year; and those predicting optimistic was 34.8 percentage points higher than those predicting unoptimistic.  

With the further advancement of high quality development of industry, the drive role of high-tech industries, strategic emerging industries and new products will further enhance, the process of industrial structure adjustment, transformation and upgrading will further deepen, and the whole industrial economy will continue its basic pattern of steady operation with improvement.  

IV. Operation conditions of small and micro enterprises have improved to some extent 

Financial stress for small and micro enterprises has been alleviated. According to survey, in Q1, only 4.4% of enterprises stated that difficult financing was the outstanding problem in that quarter, the second lowest level since 2012. The average annual interest rate and charge rate for small and micro enterprises to obtain bank loans was about 5.73%, 0.06 percentage points lower than that of Q4 last year, being the lowest point since 2012; enterprises stating that financial stress was the outstanding problem in the quarter accounted for 13.9%, being the lowest since 2013.  

The investment initiatives of small and micro enterprises increased. In Q1, in the sample enterprises covered by survey, 21.7% of them made investment, 0.5 percentage points higher than that of Q4 last year, being the highest point since last year.  

(The author is the director of the Industrial Department of National Bureau of Statistics)


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