China’s economy maintained steady momentum in August, with key indicators demonstrating resilience despite external uncertainties and domestic pressures, according to official data released early this week by the National Bureau of Statistics (NBS).
The data reveals that industrial output, consumer spending, and foreign trade all experienced stable growth, while high-tech sectors such as smart vehicles and integrated circuits recorded double-digit gains, highlighting the economy’s ongoing transformation towards high-quality development.
In August, the value-added output of major industrial enterprises rose by 5.2 percent year-on-year, with manufacturing climbing by 5.7 percent. High-tech manufacturing expanded by 9.3 percent, outpacing overall industrial growth. Notably, the output of integrated circuits surged by 23.5 percent, while production of smart vehicle equipment and electronic components increased by 17.7 percent and 13.1 percent, respectively.
Retail sales of consumer goods grew by 3.4 percent year-on-year in August to 3.97 trillion yuan ($556.77 billion), while service-related consumption proved more dynamic, rising by 5.1 percent in the January-August period. Tourism, cultural activities, and live performances were particularly active.
“Thanks to the implementation of special actions to boost consumption and the rollout of livelihood policies including childcare subsidies and free preschool education, residents’ consumption capacity and willingness are expected to strengthen,” said NBS spokesperson Fu Linghui.
Employment remained broadly stable, with the surveyed urban unemployment rate at 5.3 percent in August, up 0.1 percentage points from July due to the graduation season but consistent with last year’s level.
Foreign trade continued to show resilience. In August, total trade rose by 3.5 percent year-on-year, marking the third consecutive month of simultaneous growth in both exports and imports.
Fu acknowledged challenges including a “complex external environment with multiple instabilities, stronger supply than demand in the domestic market, and business difficulties faced by some companies.” However, he stressed that “the fundamentals underpinning China’s long-term economic growth remain intact,” citing the country’s deepening reforms, stronger domestic market, and policy support.
Analysts noted that some indicators slowed from July due to a high base effect last year, but highlighted robust momentum in high-tech investment. Manufacturing investment rose by 5.1 percent year-on-year in the first eight months, while investment in equipment and tools surged by 14.4 percent. Production of 3D printers, new-energy vehicles, and industrial robots jumped by 40.4 percent, 22.7 percent, and 14.4 percent, respectively.
Looking ahead, more policy support is expected. At a July meeting, the Communist Party of China’s Political Bureau urged the “rigorous implementation of a more proactive fiscal policy and a moderately loose monetary policy” to sustain growth. Analysts predict new measures in the fourth quarter, potentially including increased fiscal stimulus, central bank rate cuts, and steps to stabilize the property market.
“The economy is well-positioned for steady and positive development,” Fu said. “With macro policies taking effect, reform and opening up further deepening, and the interplay between domestic and international economic flows becoming smoother, growth will continue to be supported.”
China has set a full-year economic growth target of around 5 percent. In the first half of 2023, GDP expanded by 5.3 percent year-on-year, keeping the country on track to achieve its annual goal.
