Tag Archives: industrial output

Shenzhen confirms 6.6% growth, blames nothing

After the provincial government leaked Shenzhen’s GDP headline number for the first three quarters yesterday, causing a rush of commentary by bloggers and real-estate analysts, the city government decided today to clarify the reasons why its economy slowed so sharply, to 6.6% from 7.4% in the first six months.

Understandably, the report was full of numbers that the Shenzhen Daily tried to portray in a positive light.

At the heart of the data was an unmistakeable weakness: a sharp slowdown in industrial output and input, as we had expected in our report published yesterday.

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Shenzhen sees sharp slowdown in Q3

Something is going on in Shenzhen. The city has not yet released any reports on its economic performance in the first three quarters, yet provincial data show that the city’s GDP growth dropped sharply in Q3.

Private commentators have been reporting the provincial data today, many with alarmist analysis. This is rightly so: the 6.6% growth number recorded by Shenzhen for the first three quarters of this year follows 7.4% reported for the first six months. If accurate, that is an unprecedented quarterly slowdown.

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Huizhou boosts investment to offset falling output

Huizhou’s economy is continuing to slow amid a tough external environment, but rising investment levels are cushioning the economy, according to official data.

Industrial output continued to fall from January to August , with growth among enterprises above designated size rising only 0.7% YoY, down 1.5 percentage points from the Jan-Jul period. Electronics and petrochemicals, the two big guns, were down -1.6% and -4.5%, respectively, which was slower than the Jan-Jul period by 1.1 and 2.5 percentage points, respectively.

However, fixed-asset investment growth accelerated. From January to August , it shot up 15.1% , 2.7 percentage points faster than the Jan-Jul period, and 12.1 percentage points faster YoY. Industrial investment grew 15.8%; infrastructure investment jumped 24.5%; and real estate investment jumped 20.4%.

Total retail sales rose 7.6% , but this was down 1 percentage point from the first half of the year. Vehicle sales were a major drag, falling -3.2% , down 4.3 percentage points from the first half of the year. Home appliances were up 7.9% , but this was a steep drop of 13 percentage points from the first half.

Biomeds, appliances keep Zhuhai growing

Zhuhai’s economy kept growing in August, despite a slowdown in its traditional industries, as the twin pillars of biomedicine and home appliances continued their recent surge.

From January to August, according to official data, industrial production (above designated size) was up 4% to RMB 71.713 billion, flat over the Jan-Jul period. The biomedical industry and the household electrical appliance industry maintained double-digit growth, at 18.3% and 16.0%, respectively. City leaders are likely thankful: the petrochemical industry and the power and energy industry, by contrast, barely grew, by 2.6% and 1.5%, respectively. A bright spot was high-tech enterprises, which rose 5.8%.

Fixed-asset investment is proving anemic. In January to August, at RMB120.474 billion, it was up just 2.2%, probably because the Hengqin Railway Line is nearing completion and there are few other major infrastructure projects with shovels in the ground. Industrial investment, however, shone: at RMB 17.653 billion, it was up 18.0%, a jump of 12 percentage points. 

Retail sales held up, though they weren’t stellar, at RMB 81.737 billion, up 5.7%. Sales related to tourism rose fastest, with accommodation up 7.7% and catering up 10.7%.

Guangdong GDP up 6.5%

Following the release last week of national data showing the country’s economy had slowed to its lowest growth rate in three decades (6.2%), the National Bureau of Statistics has released data showing Guangdong’s GDP grew faster than the national average, up 6.5% at RMB5.05 trillion. 

Highlights of the data, according to the provincial government, were:

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