The National Statistics Bureau (NSB) has released a dataset comprising industrial production, retail sales, fixed asset investments, and unemployment figures for May 2024 and the first four months of the year.
The data for May indicates continued signs of cooling in the economy following a recovery in the first two months. While industrial production and retail sales contributed positively, the decline in real estate investments continued to drag down fixed asset investments.
DECLINE IN REAL ESTATE INVESTMENTS CONTINUES
Fixed asset investments, which include expenditures on infrastructure, properties, machinery, and equipment, saw a 4% increase in the first five months compared to the same period last year. However, this was lower than the 4.2% increase in the first four months and the 4.5% rise in the first quarter.
Within fixed asset investments, infrastructure investments rose by 5.7%, and manufacturing investments increased by 9.6%, while real estate investments saw a decline of 10.1%, continuing their downward trend.
Excluding real estate investments, fixed asset investments increased by 8.6% in the first five months; however, the decline in real estate investments continues to drag down overall investments.
Furthermore, real estate sales dropped by 20.3% in terms of area and by 27.9% in terms of sales value compared to the same period last year.
Although the government announced last month that it would allocate 300 billion yuan (approximately 41.4 billion dollars) to reduce unsold housing stock in the real estate sector, the measures have yet to produce the expected impact.
NSB spokesperson Liu Ayhua commented that it will take time for the policy measures to take effect, as the real estate market is in a period of adaptation.
PRODUCTION AND CONSUMPTION
Industrial production, which calculates output from industrial enterprises with annual revenues exceeding 20 million yuan (approximately 2.75 million dollars), increased by 5.6% in May compared to the same month last year, remaining below March’s 6.7% rise.
Retail sales, a measure of consumption, grew by 3.7% year-on-year in May, surpassing the 2.3% increase recorded in March.
The increase in retail sales was influenced by a surge in consumer spending during the 5-day holiday for Labor Day on May 1st.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
