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Industrial Economy Maintains a Momentum of Stable Progress

Submit Time:30-07-2018 | Zoom In | Zoom Out

Author: | Source:National Bureau of Statistics

Abstract:

As the supply-side structural reform goes deeper, the industrial production, structure and efficiency have improved stably. There emerge more favorable factors that underpin the steady enhancement in industrial economy.  

I. Steady progress in industrial production 

In May, the added value of the industries above the designated scale nationwide realized a year-on-year actual growth rate of 6.8%, up 0.3 percentage point over that in last May; and the industrial added value from January to May grew by 6.9% year on year, a rate on par with that from January to April, up 0.2 percentage point over the same period of last year.  

Among the 41 industrial categories, 36 saw their added value on the rise in May, accounting for 87.8% of all these surveyed sectors. Of these, electronics, automobile, electricity, pharmaceuticals, tobacco and other sectors all generated a two-digit growth rate.  

Out of the surveyed 596 types of industrial products, 368 sustained a year-on-year growth, accounting for 61.7% of the total. Such emerging products as solar panel, fiber optic products, new energy automobiles, industrial robots, integrated circuits, and civilian drones developed at a fast pace. Steel, nonferrous metal, generated energy and other energy-intensive products accelerated their growth rate somewhat as well.  

II. Multiple factors contributing to the steadily improved industrial economy 

From the perspective of production, the industrial power consumption went up by 10.8% year on year, up 3.5 percentage points than last month; and the industrial power consumption with line losses excluded rose by 11.4%, 5.5 percentage points faster than last month, which signaled that industrial production activities became more vibrant.  

In the logistical point of view, the freight turnover in May increased at a rate of 8.2% year on year, up 6.3 percentage points over last month. The freight volume grew by 8.5% on a year-on-year basis, up 1.1 percentage points over last month. Of it, the volume of railway freight went up by 11.8% year on year, up 10.4 percentage points over last month. This pointed out an increase in the traffic volume of industrial products.  

In terms of demand, the producer price index (PPI) in May rose by 4.1% year on year. The growth rate has gone up for two consecutive months. The index picked up at a rate of 0.4% over last month. It is the first time for the index to end its drop in the past four months, and indicates that demands for industrial products are expanding.  

With respect to tax, the industrial value added tax (VAT) went up by 16.6% from January to May, up 0.8 percentage point over the growth rate from January to April. Special equipment, general equipment, steel products and billets, construction materials, crude oil, finished oil, chemicals and other sectors drove up their corporate income tax at a two-digit rate.  

Investments in the manufacturing sector rose by 5.2% from January to May, up 0.4 percentage point over the period from January to April. Of these, those going to high-tech manufacturing increased by 9.7%.  

III. Improving industrial structure and efficiency 

Industrial structure kept improving. The added value of high-tech sectors and equipment manufacturing increased by 12% and 9.3% on a year-on-year basis from January to May, up 5.1 and 2.4 percentage points than that of the industries above the designated scale, respectively. The added value of high-tech sectors and equipment manufacturing contributed 12.9% and 32.3% to that of the industries above the designated scale, up 0.8 and 0.3 percentage point over the same period of last year, respectively.  

Industrial efficiency continued to improve. From January to April, the profit margin of main business income of industrial enterprises above the designated scale nationwide stood at 6.24%, an increase of 0.24 percentage point year on year. By the end of April, the asset-liability ratio of the industrial enterprises above the designated scale was 56.5%, down 0.7 percentage point year on year. Calculated by the year-on-year standards, the main business income generated by the industrial enterprises above the designated scale nationwide went up at the rate of 10.5% from January to April 2018, up 0.9 percentage point over the growth pace from January to March. Their profit increased by 15% over the same period, 3.4 percentage points faster than the period from January to March. The fairly rapid rise in industrial profit was mainly credited to the fast growing production and sales, the recovering PPI, and the remarkable driving force generated by such bulk commodity sectors as steel.  


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