New Office of the State Council: the fundamentals of the overall stability and long-term improvement of China's economic operation have not changed.

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The Information Office of the State Council held a press conference on the operation of the national economy in November on December 15. Fu Linghui, spokesman of the National Bureau of Statistics and director of the Department of Comprehensive Statistics of the National economy, introduced the operation of the national economy in November 2021. And answer the reporter's questions.

Fu Linghui said: in November, in the face of multiple challenges such as a complex and severe international environment and frequent domestic epidemics, under the strong leadership of the CPC Central Committee, all localities and departments conscientiously implemented the decisions and arrangements of the CPC Central Committee and the State Council, strengthened the cross-cycle adjustment of macro policies, continued to do a good job in the work of "six stability" and "six guarantees," stepped up efforts to ensure supply, stabilize prices, and help enterprises to bail out hardships, and the national economy continued to recover. Industrial and agricultural production has risen steadily, the employment situation has been generally stable, consumer prices have risen moderately, the balance of payments has continued to improve, high-quality development has been steadily advanced, development resilience has been continuously enhanced, and the overall economic operation has been stable.

In November, the added value of industries at and above the national scale increased by 3.8 percent over the same period last year, 0.3 percentage points higher than the previous month; the two-year average growth rate was 5.4 percent, 0.2 percentage points higher than the previous month; and the month-on-month growth was 0.37 percent. Divided into three major categories, the added value of the mining industry increased by 6.2% compared with the same period last year, the manufacturing industry increased by 2.9%, and the electricity, heat, gas and water production and supply industries increased by 11.1%. The added value of high-tech manufacturing increased by 15.1% over the same period last year, 0.4 percentage points faster than the previous month; the two-year average growth rate was 12.9%. In terms of products, the output of new energy vehicles, industrial robots and integrated circuits increased by 112.0%, 27.9% and 11.9% respectively compared with the same period last year. In terms of economic type, the added value of state-owned holding enterprises increased by 3.6% compared with the same period last year; joint-stock enterprises grew by 4.5%; foreign investors and Hong Kong, Macao and Taiwan investment enterprises increased by 1.9%; and private enterprises grew by 3.9%. From January to November, the added value of industries at and above the national scale increased by 10.1% compared with the same period last year, with an average growth rate of 6.1% in two years. In November, the manufacturing purchasing managers' index was 50.1%. From January to October, the total profits of industrial enterprises above the national scale reached 7.165 trillion yuan, an increase of 42.2 percent over the same period last year, with an average increase of 19.7 percent in two years. The operating income profit margin of industrial enterprises above scale was 7.01 percent, an increase of 1.04 percentage points over the same period last year.

The increase in ex-factory prices of industrial producers has slowed down. In November, producer prices across the country rose 12.9% from a year earlier, down 0.6 percentage points from the previous month; they were unchanged from the previous month. The purchase price of industrial producers rose 17.4% from the same period last year, an increase of 0.3 percentage points over the previous month; it rose 1.0% from the previous month. From January to November, the ex-factory prices of industrial producers and the purchase prices of industrial producers rose 7.9% and 10.7% respectively compared with the same period last year.

In response to a reporter's question, Fu Linghui said that the Central Economic work Conference made a judgment that China's economic development is facing the triple pressure of demand contraction, supply shock, and expected weakening. this was put forward in the context of the complex and severe international situation, the spread of the global epidemic, poor circulation in the supply chain of the industrial chain, rising commodity prices, and prominent domestic structural problems, and new downward pressure on the economy. From the perspective of statistics, it also clearly reflects these triple pressures and the downward pressure on the economy.

In terms of demand, the year-on-year growth rate of retail sales of consumer goods has dropped to single digits from double-digit growth at the beginning of the year, and the two-year average growth rate has also dropped from 6.3% in March to 1.5% in August. Although it has improved in the past two months, it is still at a low level. The year-on-year growth rate of investment also dropped from double-digit growth at the beginning of the year to single-digit growth, and the two-year average growth rate also declined as a whole, reflecting changes in demand contraction.

In terms of supply, international commodity prices are rising, some domestic energy and metal supplies are tight, the problem of lack of cores in some industries such as automobiles is obvious, and the ex-factory price increases of industrial producers have expanded continuously. PPI growth widened from 0.3 per cent in January to 13.5 per cent in October, and although the increase has slowed down this month, it is still at a high level. Car production also showed a continuous year-on-year decline, reflecting the impact of supply shocks.

According to expectations, the manufacturing purchasing managers' index has fallen continuously since April, falling to a contraction range in September and October, with small-business manufacturing PMI contracting for seven months in a row. The business activity index of the service industry fluctuated greatly affected by the epidemic, but on the whole, it also showed a downward trend. In November, the service sector business activity index was 51.1%, down 0.5 percentage points from the previous month. Among them, the business activity index of accommodation, catering and other industries fell back to the contraction range, mainly affected by the spread of the epidemic. All these reflect the weakening of expectations.

In terms of growth, the two-year average GDP growth rate in the first, second and third quarters was 5%, 5.5% and 4.9% respectively, and the economic growth rate dropped significantly in the third quarter, which also reflects the downward pressure on the economy.

From the perspective of the future, despite these triple pressures, it should also be noted that the fundamentals of China's long-term improvement in the economy have not changed, and the characteristics of strong resilience are also relatively prominent. In the next stage, there is still a good foundation for continuous cross-cyclical and counter-cyclical regulation of macro policies to maintain stable economic development.

"Click to view the picture and text record of the press conference on the operation of the national economy held by the State Information Office in November.