China's GDP grew by 5.3% year-on-year in the first half of the year

In the first half of the year, China's national economy operated overall steadily, with a positive trend, stable growth in production and demand, a generally stable employment situation, continued increase in residents' income, growth of new driving forces, new progress in high-quality development, and stability in the social situation.

On Tuesday, July 15, the National Bureau of Statistics released data showing that, according to preliminary calculations, the domestic gross domestic product (GDP) in the first half of the year was 66,053.6 billion yuan, a year-on-year increase of 5.3% at constant prices. By industry, the added value of the primary industry was 3,117.2 billion yuan, a year-on-year increase of 3.7%; the added value of the secondary industry was 23,905.0 billion yuan, an increase of 5.3%; and the added value of the tertiary industry was 39,031.4 billion yuan, an increase of 5.5%.

By quarter, the GDP in the first quarter increased by 5.4% year-on-year, while the second quarter grew by 5.2%. On a quarter-on-quarter basis, the GDP in the second quarter grew by 1.1%.

I. Stable Summer Grain Production and Steady Growth in Animal Husbandry

In the first half of the year, the added value of agriculture (planting industry) increased by 3.7% year-on-year. The total summer grain output nationwide was 149.74 million tons, a decrease of 150,000 tons compared to the previous year, down 0.1%. In the first half of the year, the output of pork, beef, mutton, and poultry meat was 48.43 million tons, a year-on-year increase of 2.8%, with pork, beef, and poultry meat outputs increasing by 1.3%, 4.5%, and 7.4%, respectively, while mutton output decreased by 4.6%; milk output increased by 0.5%, and egg output increased by 1.5%. By the end of the second quarter, the number of live pigs was 42.447 million, a year-on-year increase of 2.2%; in the first half of the year, the number of pigs slaughtered was 36.619 million, an increase of 0.6%.

II. Rapid Growth in Industrial Production, Good Momentum in Equipment Manufacturing and High-Tech Manufacturing

In the first half of the year, the added value of industrial enterprises above designated size nationwide increased by 6.4% year-on-year. By the three major categories, the added value of the mining industry increased by 6.0% year-on-year, manufacturing grew by 7.0%, and the production and supply of electricity, heat, gas, and water increased by 1.9%. The added value of equipment manufacturing increased by 10.2% year-on-year, and the added value of high-tech manufacturing increased by 9.5%, with growth rates 3.8 and 3.1 percentage points faster than the overall industrial enterprises above designated size. By economic type, the added value of state-controlled enterprises increased by 4.2% year-on-year; joint-stock enterprises grew by 6.9%, foreign and Hong Kong, Macao, and Taiwan-invested enterprises grew by 4.3%; and private enterprises grew by 6.7%. By product, the output of 3D printing equipment, new energy vehicles, and industrial robots increased by 43.1%, 36.2%, and 35.6% year-on-year, respectively. In June, the added value of industrial enterprises above designated size increased by 6.8% year-on-year and grew by 0.50% month-on-month. In June, the manufacturing purchasing managers' index was 49.7%, an increase of 0.2 percentage points from the previous month; the business activity expectation index was 52.0%. From January to May, the total profit of industrial enterprises above designated size nationwide was 2,720.4 billion yuan, a year-on-year decrease of 1.1%.

III. Accelerated Growth in the Service Sector, Good Development of Modern Services

In the first half of the year, the value added of the service industry grew by 5.5% year-on-year, accelerating by 0.2 percentage points compared to the first quarter. Among them, the value added of information transmission, software and information technology services, leasing and business services, transportation, warehousing and postal services, and wholesale and retail industries grew by 11.1%, 9.6%, 6.4%, and 5.9%, respectively. In June, the national service industry production index increased by 6.0% year-on-year. Among them, the production indices for information transmission, software and information technology services, leasing and business services, financial services, and wholesale and retail industries grew by 11.6%, 8.4%, 7.3%, and 6.9%, respectively. From January to May, the operating income of service enterprises above designated size increased by 8.1% year-on-year. In June, the business activity index for the service industry was 50.1%, and the business activity expectation index for the service industry was 56.0%. Among them, the business activity indices for postal services, telecommunications, broadcasting and television, satellite transmission services, internet software and information technology services, monetary financial services, capital market services, and insurance industries were all above 55.0%, indicating a relatively high prosperity range.

IV. Market sales growth rebounds, sales of upgraded consumer goods show good performance

In the first half of the year, the total retail sales of consumer goods reached 24,545.8 billion yuan, a year-on-year increase of 5.0%, accelerating by 0.4 percentage points compared to the first quarter. By the location of the operating units, urban retail sales of consumer goods were 21,305.0 billion yuan, a year-on-year increase of 5.0%; rural retail sales of consumer goods were 3,240.9 billion yuan, an increase of 4.9%. By consumption type, retail sales of goods were 21,797.8 billion yuan, an increase of 5.1%; catering revenue was 2,748.0 billion yuan, an increase of 4.3%. Basic living goods and some upgraded consumer goods showed good sales momentum, with retail sales of grain, oil, and food, sports and entertainment products, and gold and silver jewelry in units above the designated size increasing by 12.3%, 22.2%, and 11.3%, respectively. The policy of replacing old consumer goods with new ones continued to show effects, with retail sales of household appliances and audio-visual equipment, cultural and office supplies, communication equipment, and furniture in units above the designated size increasing by 30.7%, 25.4%, 24.1%, and 22.9%, respectively. The national online retail sales reached 7,429.5 billion yuan, a year-on-year increase of 8.5%. Among them, online retail sales of physical goods were 6,119.1 billion yuan, an increase of 6.0%, accounting for 24.9% of the total retail sales of consumer goods. In June, the total retail sales of consumer goods increased by 4.8% year-on-year, with a month-on-month decrease of 0.16%. In the first half of the year, retail sales of services increased by 5.3% year-on-year, accelerating by 0.3 percentage points compared to the first quarter.

V. Fixed asset investment continues to expand, manufacturing investment grows rapidly

In the first half of the year, national fixed asset investment (excluding rural households) reached 24,865.4 billion yuan, a year-on-year increase of 2.8%; excluding real estate development investment, national fixed asset investment grew by 6.6%. By sector, infrastructure investment increased by 4.6% year-on-year, manufacturing investment grew by 7.5%, and real estate development investment decreased by 11.2%. The sales area of newly built commercial housing nationwide was 45,851 million square meters, a year-on-year decrease of 3.5%; the sales amount of newly built commercial housing was 44,241 billion yuan, a decrease of 5.5%. By industry, investment in the primary industry increased by 6.5% year-on-year, investment in the secondary industry grew by 10.2%, and investment in the tertiary industry decreased by 1.1%. Private investment decreased by 0.6% year-on-year; Excluding real estate development investment, other private investment grew by 5.1%. In high-tech industries, investment in information services, aerospace and equipment manufacturing, and computer and office equipment manufacturing increased by 37.4%, 26.3%, and 21.5% year-on-year, respectively. In June, fixed asset investment (excluding rural households) decreased by 0.12% month-on-month.

VI. Continuous Growth in Goods Import and Export, Trade Structure Continues to Optimize

In the first half of the year, the total value of goods import and export reached 21.7876 trillion yuan, an increase of 2.9% year-on-year. Among them, exports were 13 trillion yuan, up 7.2%; imports were 8.7875 trillion yuan, down 2.7%. The import and export of private enterprises grew by 7.3%, accounting for 57.3% of the total import and export value, an increase of 2.3 percentage points compared to the same period last year. Import and export with countries participating in the Belt and Road Initiative grew by 4.7%. The export of electromechanical products increased by 9.5%, accounting for 60.0% of total exports. In June, the total import and export value was 3.8527 trillion yuan, an increase of 5.2% year-on-year. Among them, exports were 2.3394 trillion yuan, up 7.2%; imports were 1.5134 trillion yuan, up 2.3%.

VII. Resident Consumer Prices Remain Stable, Core CPI Shows Mild Recovery

In the first half of the year, the national consumer price index (CPI) decreased by 0.1% year-on-year. By category, prices of food, tobacco, and alcohol decreased by 0.3%, clothing prices increased by 1.3%, housing prices increased by 0.1%, prices of daily necessities and services remained flat, transportation and communication prices decreased by 2.9%, education, culture, and entertainment prices increased by 0.8%, medical care prices increased by 0.3%, and prices of other goods and services increased by 6.7%. Among food, tobacco, and alcohol prices, fresh vegetable prices decreased by 5.3%, grain prices decreased by 1.3%, fresh fruit prices increased by 2.7%, and pork prices increased by 3.8%. In June, the national consumer price index increased by 0.1% year-on-year and decreased by 0.1% month-on-month. In the first half of the year, the core CPI, excluding food and energy prices, increased by 0.4% year-on-year, an expansion of 0.1 percentage points compared to the first quarter. Among them, the core CPI in June increased by 0.7% year-on-year, an expansion of 0.1 percentage points compared to the previous month.

In the first half of the year, the national industrial producer price index decreased by 2.8% year-on-year. Among them, in June, it decreased by 3.6% year-on-year and by 0.4% month-on-month. In the first half of the year, the industrial producer purchase price index decreased by 2.9% year-on-year. Among them, in June, it decreased by 4.3% year-on-year and by 0.7% month-on-month.

VIII. Employment Situation Overall Stable, Urban Survey Unemployment Rate Slightly Decreased

In the first half of the year, the average urban survey unemployment rate nationwide was 5.2%, a decrease of 0.1 percentage points compared to the first quarter. In June, the national urban survey unemployment rate was 5.0%. The survey unemployment rate for local registered labor was 5.1%; the survey unemployment rate for migrant labor was 4.8%, among which the survey unemployment rate for migrant agricultural labor was 4.8%. The urban survey unemployment rate in 31 major cities was 5.0%. The average weekly working hours for employees in enterprises nationwide was 48.5 hours. By the end of the second quarter, the total number of rural laborers working outside was 191.39 million, an increase of 0.7% year-on-year

9. Resident income grows steadily, with rural residents' income growth outpacing urban residents

In the first half of the year, the national per capita disposable income of residents was 21,840 yuan, a nominal increase of 5.3% year-on-year, and a real increase of 5.4% after deducting price factors. By residence, the per capita disposable income of urban residents was 28,844 yuan, with a nominal increase of 4.7% year-on-year and a real increase of 4.7%; the per capita disposable income of rural residents was 11,936 yuan, with a nominal increase of 5.9% and a real increase of 6.2%. In terms of income sources, the national per capita wage income, net operating income, net property income, and net transfer income increased nominally by 5.7%, 5.3%, 2.5%, and 5.6%, respectively. The median per capita disposable income of national residents was 18,186 yuan, with a nominal increase of 4.8% year-on-year.

Overall, the more proactive macro policies in the first half of the year have shown results, and the economy continues to maintain a stable and improving development trend, demonstrating strong resilience and vitality. It should also be noted that there are many external instability and uncertainty factors, and domestic effective demand is insufficient, so the foundation for economic recovery and improvement still needs to be strengthened and consolidated