As China approaches its 75th anniversary in 2024, the nation's economy is exhibiting steady growth and resilience despite facing a complex and evolving global landscape. The first three quarters of the year have seen continuous improvements, underscoring China's commitment to high-quality development.
On the production front, industrial enterprises have reported increasing profits, particularly in sectors that are driving new growth, such as high-tech manufacturing. According to the latest data from the National Bureau of Statistics (NBS), operating revenue for industrial enterprises above the designated size reached 87.1 trillion yuan ($12.3 trillion) from January to August, marking a year-on-year increase of 2.4%. Notably, profits in the computer, communications, and other electronic equipment manufacturing sector surged by 22.1%, reflecting the ongoing optimization of China's industrial structure.
The manufacturing Purchasing Managers' Index (PMI) for September climbed to 51.2, moving above the critical threshold that separates expansion from contraction. High-tech manufacturing PMI and equipment manufacturing PMI stood at 53.0 and 52.0 respectively, indicating continued positive development momentum in these sectors.
On the consumption side, several consumer sectors have entered a period of seasonal growth. Policies aimed at boosting domestic demand, such as large-scale equipment upgrades and trade-in programs for consumer goods, are beginning to show tangible effects. From January to August, profits in the consumer goods manufacturing sector rose by 8.4% year on year, outpacing the average growth in manufacturing. The consumer confidence index has improved slightly, increasing from 90.1 in June to 91.3 in September, suggesting that domestic demand continues to act as a stabilizing force for economic growth.
In terms of pricing, domestic price levels showed signs of a rebound. The Consumer Price Index (CPI) rose by 0.4% year on year in September and remained flat month on month. While prices of agricultural products and industrial goods showed clearer trends due to improved demand expectations and seasonal consumption patterns, the Producer Price Index (PPI) experienced declines both month on month and year on year, influenced by factors such as declining international commodity prices.
Other economic indicators, including fixed asset investment, foreign trade, and the surveyed urban unemployment rate, have also improved to some extent. These developments highlight the resilience of China's economy and its steady path toward recovery and long-term improvement.
As the external environment becomes increasingly complex and uncertain, it is essential to overcome challenges to maintain China's economic growth. Going forward, emphasis should be placed on actively expanding effective domestic demand, accelerating the cultivation of new economic drivers, and improving household income levels. Strengthening monetary policy regulation, enhancing coordination between monetary and fiscal policies, and implementing various reform measures will further solidify the foundation for sustained economic recovery and improvement.
Reference(s):
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