China's economy maintained its stable trajectory in August, reflecting steady progress towards high-quality development, according to the National Bureau of Statistics (NBS).
Consumer Market Maintains Stable Recovery
Retail sales rose by 2.1% year-on-year in August. Notably, sales of communications equipment surged by 14.8%, while cereals, oil, and food saw a 10.1% increase. Medicine sales grew by 4.3%, and home appliances along with audio and video products went up by 3.4%.
Online sales remained a bright spot, increasing by 8.9% year-on-year from January to August. Sales of physical goods alone grew by 8.1%, accounting for a quarter of total retail sales.
NBS spokesperson Liu Aihua highlighted a recovery trend in the consumer market, particularly in services, new-type consumption, and online sales. Vibrant summer travel and strong demand for cultural products and tourism underscore the potential of service consumption, while digital and green consumption are becoming increasingly popular among consumers.
To boost consumption, China has implemented measures such as large-scale equipment upgrades and consumer goods trade-ins. Recently, efforts have intensified to encourage the purchase of automobiles and home appliances.
Bruce Pang, chief economist at JLL Greater China, noted that growth in commodity sales, restaurant revenue, and online retail sales remain solid, supported by policy measures. He emphasized the importance of promoting highly dynamic consumer sectors.
Industrial Output Sustains Stable Growth
China's value-added industrial output expanded by 4.5% year-on-year in August. On a monthly basis, industrial output increased by 0.32% compared to the previous month.
Liu Aihua stated that nearly 80% of industries and over 50% of products showed year-on-year increases. The equipment manufacturing sector contributed 47.9% to the industrial output growth, with new growth drivers in the manufacturing sector being strengthened.
Fixed-Asset Investment Maintains Stable Expansion
Fixed-asset investment in China rose by 3.4% year-on-year in the first eight months of 2024, reaching 32.94 trillion yuan ($4.64 trillion). Investment in infrastructure construction increased by 4.4%, while manufacturing investment grew by 9.1%.
Excluding the property sector, which remains in an adjustment phase, fixed-asset investment climbed by 7.7% year-on-year. Investment in property development, however, fell by 10.2%.
The surge in investment is driven by strong demand from large-scale equipment upgrades and the trade-in of consumer goods. Investment in purchasing equipment, tools, and instruments jumped by 16.8% year-on-year in the first eight months.
Liu emphasized that investment plays a crucial role in fostering new growth, with more capital flowing into high-tech sectors.
Reference(s):
cgtn.com
