Momentum of growth gradually recovering

Despite the complex and severe international environment and extreme high temperatures in many parts of China in August, the major economic indicators improved, indicating that production and demand are recovering after the suspension of economic operations in various parts of the country in response to the reemergence of the novel coronavirus.

According to the economic data released by the National Bureau of Statistics, the positive momentum is mainly demonstrated in five aspects.

First, enterprise production accelerated and industrial output growth picked up. The added value of industrial enterprises above designated size increased by 4.2 percent year-on-year in August, 0.4 percentage points higher than the previous month.

Second, infrastructure investment grew faster, which improved investment demand. Infrastructure investment grew by 8.3 percent year-on-year in the first eight months of this year, 0.9 percentage points faster than in the first seven months of this year.

Third, investment in the manufacturing sector maintained rapid growth, and high-tech manufacturing grew rapidly. Manufacturing investment grew by 10 percent in the first eight months of this year, 0.1 percentage points higher than that in the first seven months of this year, maintaining rapid growth.

Fourth, the recovery of market sales accelerated, and the cumulative growth of consumption and retail sales turned positive. In August, the total retail sales of consumer goods increased by 5.4 percent year-on-year, 2.7 percentage points higher than the previous month, indicating a significant recovery in consumption growth.

Fifth, there was marginal improvement in the service sector, and the production index picked up significantly. The service sector production index rose 1.8 percent year-on-year in August, up 1.2 percentage points from the previous month and the highest growth rate in nearly six months.

As temperatures fall in autumn, the impact of hot weather on supply and demand will weaken, and economic growth momentum is expected to continue to recover.

But at the same time, the foundation for economic recovery is still not solid. The country needs to pay close attention to the effective implementation of a package of policies and measures to stabilize the economy, expand effective demand, and keep the economy operating within a reasonable range.