Read in Chinese

Speakers:

Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

March 17, 2025

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). This is a regular briefing on China's economic data. Today, we have invited Mr. Fu Linghui, spokesperson of the National Bureau of Statistics (NBS) and director general of the Department of Comprehensive Statistics of the NBS, to brief you on China's economic performance in the first two months of 2025 and answer your questions.

Now, I'll give the floor to Mr. Fu for his introduction.

Fu Linghui:

Good morning, everyone. As usual, I will start by briefing you on the main economic indicators in the first two months of 2025 and then answer your questions.

In the first two months, the national economy started off smoothly, with development trends moving in a new and positive direction.

In January and February, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, all regions and departments thoroughly implemented the decisions and arrangements made by the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, fully and faithfully applied the new development philosophy on all fronts, accelerated efforts to create a new pattern of development and took solid steps to promote high-quality development. As a result, a package of existing policies and incremental policies continued to take effect, industrial and service sectors grew rapidly, consumption and investment continued to improve, employment was generally stable, and new quality productive forces grew and thrived. The national economy got off to a steady start with new and positive development momentum.

First, industrial production grew rapidly, with accelerated growth in equipment manufacturing and high-tech manufacturing.

The total value added of industrial enterprises above designated size grew by 5.9% year on year in the first two months, 0.1 percentage point faster than that of 2024. In terms of sectors, the value added of mining went up by 4.3% year on year, manufacturing up by 6.9%, and the production and supply of electricity, thermal power, gas and water up by 1.1%. The value added of equipment manufacturing increased by 10.6% year on year, 2.9 percentage points faster than that of 2024; and the value added of high-tech manufacturing increased by 9.1%, which was 0.2 percentage point faster. In terms of ownership, the value added of state holding enterprises was up by 3.7% year on year; that of share-holding enterprises was up by 6.6%; that of enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan was up by 3.2 %; and that of private enterprises was up by 6.7%. In terms of products, the production of new energy vehicles (NEVs), 3D printing devices and industrial robots grew by 47.7%, 30.2% and 27%, respectively. In February, the total value added of industrial enterprises above designated size went up by 0.51% month on month. In February, the Manufacturing Purchasing Managers' Index (PMI) stood at 50.2%, 1.1 percentage points higher than the previous month; and the Production and Operation Expectation Index was 54.5%.

Second, the service sector witnessed a good growth momentum and modern services grew rapidly.

In the first two months, the Services Production Index grew by 5.6% year on year, 0.4 percentage point faster than that of 2024. Specifically, the Services Production Index of information transmission, software and IT services grew by 9.3%, leasing and business services grew by 8.8%, wholesale and retail grew by 5.6%, and finance grew by 5.5% year on year. In February, the Business Activity Index for Services was 50%, and the Business Activity Expectation Index for Services was 56.9%. Specifically, the Business Activity Index for industries like air transportation, postal services, telecommunication, broadcast, television and satellite transmission services, monetary and financial services and capital market services all stayed within the high expansion range of 55% and above.

Third, the growth of market sales accelerated and trade-in goods showed good sales.

In the first two months, the total retail sales of consumer goods reached 8,373.1 billion yuan ($1,152.9 billion), up by 4% year on year, 0.5 percentage point faster than that of 2024. Analyzed by different areas, the retail sales of consumer goods in urban areas reached 7,246.2 billion yuan, up by 3.8%; and that in rural areas reached 1,126.9 billion yuan, up by 4.6%. Grouped by consumption patterns, the retail sales of goods were 7,393.9 billion yuan, up by 3.9%; and the income of catering was 979.2 billion yuan, up by 4.3%. Sales of basic living goods and certain upgraded goods achieved sound growth. The retail sales of grain, oil and food and of sports and recreational articles by enterprises above designated size went up by 11.5% and 25%, respectively. The effect of consumer goods trade-in policies continued to manifest, with the retail sales by enterprises above designated size of communication equipment growing by 26.2%, cultural and office supplies by 21.8%, furniture by 11.7%, and household appliances and audio-visual equipment by 10.9%. Online retail sales reached 2,276.3 billion yuan, up by 7.3% year on year. Specifically, the online retail sales of physical goods were 1,863.3 billion yuan, up by 5%, accounting for 22.3% of the total retail sales of consumer goods. In February, the total retail sales of consumer goods grew by 0.35% compared with the previous month. In the first two months, the retail sales of services grew by 4.9% year on year.

Fourth, growth of investment in fixed assets picked up and investment in manufacturing and high-tech industries grew quickly.

In the first two months, the investment in fixed assets (excluding rural households) reached 5,261.9 billion yuan, up by 4.1% year on year, 0.9 percentage point faster than that of 2024; and the investment in fixed assets was up by 8.4% with investment in real estate development deducted. Specifically, investment in infrastructure grew by 5.6% year on year, that in manufacturing grew by 9%, and that in real estate development declined by 9.8%. The floor space of newly-built commercial buildings sold was 107.46 million square meters, down by 5.1% year on year, with the decline narrowing by 7.8 percentage points compared with that of 2024; and the total sales of newly-built commercial buildings were 1,025.9 billion yuan, down by 2.6%, with the decline narrowing by 14.5 percentage points. By industry, investment in the primary industry increased by 12.2% year on year, that in the secondary industry was up by 11.4%, and that in the tertiary industry was up by 0.7%. Private investment maintained the same level year on year, or increased by 6% with the investment in real estate development deducted. Investment in high-tech industries increased by 9.7% year on year. Specifically, the investment in information services grew by 66.4%, e-commerce services by 31.9%, computer and office device manufacturing by 31.6%, and aerospace vehicle equipment manufacturing by 27.1%. In February, the investment in fixed assets (excluding rural households) increased by 0.49% compared with the previous month.

Fifth, imports and exports of goods were generally stable, and the trade structure continued to improve.

In the first two months, the total value of imports and exports of goods reached 6.5364 trillion yuan, down 1.2% year on year. Of this, exports totaled 3.8812 trillion yuan, up 3.4%; imports amounted to 2.6551 trillion yuan, down 7.3%. Imports and exports by private enterprises rose 2%, accounting for 56.4% of the total value of imports and exports. This share was 1.8 percentage points higher than that in the same period last year. Exports of mechanical and electrical products grew 5.4%, accounting for 60% of the total export value.

Sixth, employment was generally stable, and the surveyed urban unemployment rate remained steady.

In the first two months, the country's surveyed urban unemployment rate averaged 5.3%. In February, the surveyed urban unemployment rate was 5.4%, up 0.2 percentage points from the previous month. The surveyed unemployment rate for the population with local household registration was 5.6%, and for those with non-local registration, it was 5%. The rate for people with non-local agricultural household registration was 5.1%. The surveyed urban unemployment rate in 31 major cities was 5.2%. On average, employees of enterprises worked 47.1 hours per week.

Seventh, consumer prices fell year on year, and the decline in producer prices narrowed.

In the first two months, the consumer price index (CPI) receded 0.1% year on year. Specifically, it rose 0.5% in January and dropped 0.7% in February. Grouped by commodity categories, in the first two months, prices for food, tobacco and alcohol fell 0.9% year on year; clothing rose 1.1%; housing increased 0.1%; articles and services for daily use decreased 0.9%; transportation and communication dropped 1.6%; education, culture and recreation rose 0.6%; medical services and health care increased 0.4%; and other articles and services rose 5.9%. Among the prices for food, tobacco and alcohol, fresh vegetable prices fell 5.5%, grain prices dropped 1.4%, fresh fruit prices decreased 0.6%, and pork prices rose 8.8%. The core CPI, excluding food and energy prices, rose 0.3% year on year. In January and February, the CPI rose 0.7% and fell 0.2% month to month, respectively.

In the first two months, the national producer prices fell 2.2% year on year. In January, producer prices fell 2.3% year on year and 0.2% month on month. In February, they dropped 2.2% year on year, narrowing the decline by 0.1 percentage point compared with the previous month, and fell 0.1% month on month. In the first two months, the purchasing prices for industrial producers fell 2.3% year on year.

Generally speaking, in the first two months, as various macro policies continued to take effect, the national economy maintained its new and positive momentum, and the quality of development steadily improved. However, we should be aware that the external environment is increasingly complex and severe, domestic effective demand is weak, some enterprises face difficulties in production and operation, and the foundation for sustained economic recovery and growth is not strong enough. In the next stage, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the spirit of the Central Economic Work Conference and the "two sessions" , adhere to the general principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy on all fronts, move faster to create a new pattern of development, and make solid progress in high-quality development. We must implement more proactive and effective macro policies, stimulate domestic demand across the board, further deepen reform and opening up, make every effort to strengthen growth drivers, boost economic vitality, and improve expectations to promote sustained economic recovery and growth. Thank you.

Shou Xiaoli:

Thank you, Mr. Fu. The floor is now open for questions.