National Bureau of Statistics: Investment in high-tech industries increased 4.6% year-on-year in the first half of the year, showing significant growth in fields such as new energy, artificial intelligence, integrated circuits, etc.
The Zhitong Finance App learned that on July 15, the Information Office of the State Council held a press conference on the operation of the national economy in the first half of 2026. Mao Shengyong, deputy director of the National Bureau of Statistics, said at the conference that in the first half of this year, fixed asset investment reached 22.6 trillion yuan. Judging from the investment data for the first half of the year, investment played a huge role in promoting the development of new quality productivity, technological innovation, industrial upgrading, and improvement of people's livelihood and welfare. Among them, investment in emerging sectors continues to “increase momentum”. All regions closely follow the deployment and requirements of developing new quality productivity according to local conditions, continue to increase investment in emerging industries, and lay out future industrial circuits. Investment in fields such as new energy, artificial intelligence, and integrated circuits is clearly growing. In the first half of the year, investment in high-tech industries increased 4.6% year-on-year, while investment in integrated circuit manufacturing, electronic special materials manufacturing, and lithium-ion battery manufacturing increased by 8.8%, 10%, and 24.4%, respectively. Corporate investment is increasing more and more in innovation. This characteristic is very obvious. In the first half of the year, investment in intellectual property products increased 9.4% year-on-year, 1.5 percentage points faster than in the first quarter. The growth of intellectual property products, including R&D and the digital economy, continued to accelerate and maintain a high level of growth. The optimized implementation of large-scale equipment renewal policies has stimulated the need for enterprise transformation and upgrading. Investment in the purchase of equipment and tools increased by 8.1% in the first half of the year.
Investment in new infrastructure is “beneficial in the long run.” Infrastructure construction is linked, on the one hand, to the development of social productivity, and on the other, to improving the convenience of people's lives. It is an important guarantee and support for high-quality development. Since this year, the “Six Zhang Network” has accelerated planning and construction. Traditional infrastructure and new infrastructure have been relayed forward, computing power networks and next-generation communication networks have accelerated the layout, and investment in related fields has grown rapidly, strengthening development momentum for digital and intelligent transformation and development. In the first half of the year, investment in the Internet and related services increased by 39.9% year-on-year, investment in the information transmission industry increased by 25.6%, investment in the optical fiber manufacturing industry increased by 26.5%, and investment in water transport and air transport increased by 19.8% and 11% respectively. By the end of May, the total number of 5G base stations in China had exceeded 5 million, accounting for 39% of the total number of mobile base stations; optical fiber access ports accounted for 96.7% of Internet broadband access ports.
Mao Shengyong pointed out that looking at the next stage, there are still broad prospects for expanding effective investment. Currently, China's per capita capital stock is significantly lower than that of developed countries. The gap also means that there is strong investment demand for the transformation and upgrading of traditional industries and promoting the development of emerging industries and future industries; adapting to changes in the population structure, there is also huge investment potential in fields such as “one old, one small” service, primary health care, the expansion of quality education, and the promotion of comprehensive rural revitalization. At present, the list of 800 billion yuan of “double” investment and construction projects and 200 billion yuan of equipment renewal funds have all been issued. The construction of the “six networks” is being promoted in an integrated manner, and special plans such as urban renewal, construction of a new energy system, and high-quality development of the industrial Internet have been implemented one after another. Various policies work together to stimulate investment vitality and unleash the potential for investment growth.
The transcript is as follows:
Shou Xiaoli, Director of the Information Bureau of the Information Office of the State Council and press spokesman:
Good morning, ladies and gentlemen! Welcome to the press conference of the Information Office of the State Council. Economic data will be routinely released today. We are very happy to invite Mr. Mao Shengyong, Deputy Director of the National Bureau of Statistics, to introduce the operation of the national economy in the first half of 2026 and answer everyone's concerns. Also attending today's press conference was Ms. Wang Guanhua, press spokesperson of the National Bureau of Statistics and head of the National Economic Comprehensive Statistics Department. Next, let's first ask Mr. Mao Shengyong to give an introduction.
Mao Shengyong, Deputy Director of the National Bureau of Statistics:
Thank you to the host. Good morning to all our fellow journalists! Let me first introduce you to the basic situation of the economy in the first half of this year, and then answer everyone's concerns.
The economy operated within a reasonable range in the first half of the year, and new momentum grew rapidly
In the first half of the year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, departments in all regions earnestly implemented the decisions and arrangements of the Party Central Committee and the State Council, adhered to the general tone of steady progress, fully and accurately implemented the new development concept, accelerated the construction of a new development pattern, focused on promoting high-quality development, effectively implemented more active and promising macroeconomic policies, withstood pressure and operated within a reasonable range, production and supply grew rapidly. The employment situation was generally stable. Prices rose moderately, foreign trade was growing rapidly, new momentum was growing rapidly, people's livelihood security was effective, and development continued to be resilient..
According to preliminary accounting, the gross domestic product for the first half of the year was 69570.4 billion yuan, an increase of 4.7% over the previous year at constant prices. By industry, the primary sector added value of 3152.2 billion yuan, an increase of 3.7% over the previous year; the secondary sector added value of 25047.3 billion yuan, an increase of 3.9%; and the tertiary sector added value of 41370.9 billion yuan, an increase of 5.2%. On a quarterly basis, the gross domestic product grew 5.0% year on year in the first quarter and 4.3% in the second quarter. On a month-on-month basis, GDP grew by 0.9% in the second quarter.
1. Summer grain production and harvest increased, and the animal husbandry industry grew steadily
In the first half of the year, agricultural (planting) value added increased by 3.6% year-on-year. The country's total summer grain output was 15.75 million tons, an increase of 1 million tons over the previous year, an increase of 0.7%. In the first half of the year, pork, beef, lamb and poultry production was 50.5 million tons, up 4.3% year on year. Among them, pork and poultry production increased by 3.3% and 9.4% respectively, beef and lamb production decreased by 1.0% and 3.9% respectively; milk production increased by 2.4%, and egg production decreased by 2.2%. At the end of the second quarter, 424.91 million pigs were kept, an increase of 0.1% over the previous year; in the first half of the year, 372.46 million pigs were released, an increase of 1.7%.
2. Industrial production is growing rapidly, and the equipment manufacturing industry and high-tech manufacturing industry are growing well
In the first half of the year, the value added of industries above the national scale increased by 5.4% year-on-year. Looking at the three major categories, the value added of the mining industry increased by 3.6% year on year, the manufacturing industry grew by 5.6%, and the production and supply of electricity, heat, gas and water increased by 5.5%. The value added of the equipment manufacturing industry increased by 9.3% year on year, and the value added of the high-tech manufacturing industry increased by 13.3%, which is 3.9 and 7.9 percentage points faster than the value added of industries above all sizes, respectively. By economic type, the value added of state-owned enterprises increased 4.3% year on year; joint-stock enterprises increased 5.9%; foreign-invested enterprises, Hong Kong, Macao and Taiwan grew by 3.2%; and private enterprises increased 4.6%. By product, production of 3D printing equipment, lithium-ion batteries, and industrial robot products increased by 48.5%, 39.3%, and 28.0% year-on-year, respectively. In June, the value added of large-scale industries increased by 5.3% year-on-year, 0.8 percentage points faster than the previous month; the month-on-month increase was 0.76%. In June, the manufacturing purchasing managers' index was 50.3%, up 0.3 percentage points from the previous month; the expected index of enterprise production and operation activity was 54.3%, up 0.4 percentage points. From January to May, industrial enterprises above the national scale achieved a total profit of 3144 billion yuan, an increase of 18.8% over the previous year.
Mao Shengyong:
3. The service industry is growing steadily, and the modern service industry is developing well
In the first half of the year, value added in the service sector increased by 5.2% year-on-year. Among them, the value added of leasing and business services, information transmission, software and information technology services, finance, and lodging and catering increased by 11.9%, 10.7%, 6.7%, and 5.0%, respectively. In June, the national service industry production index increased 4.7% year on year, 0.3 percentage points faster than the previous month. Among them, the production indices of leasing and business services, information transmission, software and information technology services, and financial services increased by 9.7%, 9.6%, and 5.8%, respectively. From January to May, the revenue of large-scale service enterprises increased 6.6% year-on-year. In June, the index of business activity in the service sector was 50.4%, up 0.1 percentage points from the previous month; the expected index of business activity in the service sector was 56.0%, up 0.6 percentage points. Among them, the index of business activity in telecommunications, radio, television and satellite transmission services, Internet software and information technology services, monetary and financial services, insurance and other industries is in a high boom range of over 55.0%.
4. The consumer market continues to expand, and retail sales of services are growing rapidly
In the first half of the year, total retail sales of consumer goods and services increased 2.7% year-on-year, with retail sales of services increasing by 5.3% and retail sales of goods increasing by 1.1%. Among retail sales of services, retail sales of communication and information services, travel consulting and rental services, and cultural, sports and leisure services are growing rapidly. In the first half of the year, total retail sales of consumer goods amounted to 24872.2 billion yuan, an increase of 1.3% over the previous year. According to the location of the business unit, retail sales of urban consumer goods amounted to 2155.6 billion yuan, an increase of 1.2% over the previous year; retail sales of rural consumer goods amounted to 3321.6 billion yuan, an increase of 2.5%. By type of consumption, retail sales of goods were 22046.7 billion yuan, up 1.1% year on year; food and beverage revenue was 2825.5 billion yuan, an increase of 2.8%. Sales of basic lifestyle products and some upgraded products grew rapidly. Retail sales of food, clothing, shoes, hats, knitwear, textile products, and communication equipment per unit above the limit increased by 7.4%, 6.7%, and 14.4%, respectively. In June, total retail sales of consumer goods amounted to 4269.1 billion yuan, up 1.0% year on year, down 0.6% last month; up 0.38% month on month. In the first half of the year, retail sales of online goods and services nationwide reached 10071.5 billion yuan, an increase of 5.2% over the previous year. Among them, retail sales of online products amounted to 6429.6 billion yuan, an increase of 4.8%; retail sales of online services amounted to 3641.9 billion yuan, an increase of 6.0%.
5. Investment in fixed assets declined, and investment in intellectual property products grew faster
In the first half of the year, the country's fixed asset investment (excluding rural households) was 22637 billion yuan, a year-on-year decrease of 5.7%; fixed asset investment after deducting real estate development fell 2.7%. Among them, investment in intellectual property products increased 9.4% year over year, 1.5 percentage points faster than in the first quarter. By sector, investment in infrastructure fell 2.4% year on year, investment in manufacturing fell 1.2%, and investment in real estate development fell 18.0%. The sales area of newly built commercial housing nationwide was 401.4 million square meters, a year-on-year decrease of 11.6%; sales of newly built commercial housing amounted to 3794.5 billion yuan, a decrease of 13.6%. By industry, investment in the primary sector increased by 0.9% year on year, investment in the secondary sector decreased by 1.1%, and investment in the tertiary sector decreased by 8.4%. Private investment fell 8.5% year over year; private investment after deducting real estate development fell 4.9%. Investment in high-tech industries increased 4.6% year on year. Among them, investment in aviation, spacecraft and equipment manufacturing, computer and office equipment manufacturing, and information services increased by 23.3%, 8.1%, and 15.5%, respectively. In June, fixed asset investment (excluding rural households) fell 0.37% month-on-month.
Mao Shengyong:
6. Import and export of goods are growing rapidly, and the trade structure continues to be optimized
The total import and export volume of goods in the first half of the year was 25468.6 billion yuan, an increase of 16.9% over the previous year. Among them, exports amounted to 1473.14 billion yuan, an increase of 13.4%; imports amounted to 1073.72 billion yuan, an increase of 22.1%. Imports and exports to the joint “Belt and Road” countries increased by 14.8%. Private enterprise imports and exports increased by 17.0%, accounting for 57.0% of total imports and exports. Exports of mechanical and electrical products increased by 20.1%, accounting for 63.5% of total exports. In June, the total import and export volume was 4782.3 billion yuan, up 24.2% year on year, 7.3 percentage points faster than the previous month. Among them, exports amounted to 2820.7 billion yuan, an increase of 20.8%; imports amounted to 1961.6 billion yuan, an increase of 29.4%.
7. Consumer prices rose moderately, while industrial producer prices rose year-on-year
In the first half of the year, the national consumer price (CPI) rose 1.0% year on year. By category, prices of food, tobacco, and food and drink fell 0.2% year on year, clothing prices rose 1.6%, housing prices fell 0.2%, household goods and services prices rose 1.9%, transportation and communication prices rose 1.8%, education, culture and entertainment prices rose 1.2%, healthcare prices rose 2.0%, and prices of other goods and services rose 11.6%. Among food, tobacco, alcohol, and food and beverage prices, pork prices fell 13.4%, food prices fell 0.3%, fresh fruit prices rose 1.5%, and fresh vegetables increased 4.1%. In June, consumer prices across the country rose 1.0% year on year and fell 0.3% month on month. Core CPI, after deducting food and energy prices, rose 1.2% year over year in the first half of the year. Among them, the core CPI rose 1.0% year on year in June.
In the first half of the year, the ex-factory prices of industrial producers across the country rose 1.5% year on year. Among them, the year-on-year increase in June was 4.1%, an increase of 0.2 percentage points over the previous month; the month-on-month decrease was 0.3%. In the first half of the year, the purchase price of industrial producers across the country rose 2.4% year on year. Among them, the year-on-year increase in June was 6.4%, and the month-on-month decrease was 0.2%.
8. The employment situation is generally stable, and the urban survey unemployment rate has declined
In the first half of the year, the average unemployment rate in the national urban survey was 5.2%. In June, the unemployment rate in the national urban survey was 5.0%, down 0.1 percentage points from the previous month. The unemployment rate in the local household registration labor force survey was 5.0%; the unemployment rate in the foreign household registration labor survey was 4.9%, of which the unemployment rate in the foreign agricultural household registration labor survey was 4.8%. The unemployment rate in the urban survey of 31 major cities was 5.0%, down 0.1 percentage points from the previous month. The average weekly working time of employees in enterprises nationwide is 48.2 hours. At the end of the second quarter, the total number of rural laborers working outside the home was 192.27 million, an increase of 0.5% over the previous year.
Mao Shengyong:
9. The income of residents is growing steadily, and the income of rural residents is growing faster than that of urban residents
In the first half of the year, the country's per capita disposable income was 22,981 yuan, a year-on-year increase of 5.2% in nominal terms. Excluding price factors, the actual increase was 4.2%. According to the place of permanent residence, the per capita disposable income of urban residents was 30,126 yuan, a nominal increase of 4.4% over the previous year, and an actual increase of 3.4%; the per capita disposable income of rural residents was 12,699 yuan, a nominal increase of 6.4% over the previous year, and an actual increase of 5.5%. In terms of revenue sources, per capita wage income, net operating income, net property income, and net transfer income of the country's residents increased nominally by 5.3%, 6.5%, 1.1%, and 5.8%, respectively. In the first half of the year, the ratio of the per capita disposable income of urban and rural residents (with rural residents as 1) was 2.37, a decrease of 0.05 from the previous year.
Overall, in the first half of the year, the national economy operated within a reasonable range. New quality productivity was cultivated and expanded, and high-quality development was moving towards new excellence. It should also be noted that there are many external instability and uncertainties, the contradictions between strong domestic supply and demand are prominent, and the foundation for a positive economy still needs to be consolidated. In the next stage, we must adhere to Xi Jinping's ideology of socialism with Chinese characteristics in the new era, adhere to steady progress, improve quality and efficiency, increase countercyclical and cross-cycle adjustment efforts, continue to expand domestic demand, optimize supply, improve growth, revitalize stocks, focus on building a strong domestic market, step up the cultivation and expansion of new momentum, step up efforts to stabilize employment, stabilize enterprises, stabilize markets, and stabilize expectations, and promote effective improvement in the quality of the economy and reasonable growth in volume.
Thank you.
Xiaoli Shou:
Thank you, Deputy Director Mao Shengyong, for the introduction. Now let's move on to the questioning session. Please let us know your news agency before asking questions.
CCTV reporter at the general station:
Faced with the uncertainty of the external environment in the first half of this year, China's economy maintained steady growth. May I ask, how to evaluate the overall performance of the economy in the first half of the year, and what are the highlights and positive changes? Thank you.
Mao Shengyong:
Thank you. Since this year, the external environment has become chaotic and intertwined, and some new domestic situations and old problems have been intertwined and superimposed. Faced with the complex situation, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, various departments in all regions took the initiative and adopted comprehensive policies to accurately and effectively implement more active and promising macroeconomic policies, develop new types of productivity according to local conditions, and effectively respond to external shocks and challenges. The Chinese economy withstood the pressure and continued its overall steady and positive development trend, showing strong resilience and vitality. Judging from the basic situation, it can be summarized into the four aspects of “stability,” “toughness,” “new,” and “excellent.”
The first one is “stable.” The economy is generally running smoothly, and the main indicators are operating within a reasonable range. Looking at growth, in the first half of this year, the total gross domestic product was 69.6 trillion yuan, a year-on-year increase of 4.7% at constant prices. The growth rate is in line with the expected annual economic growth target. GDP increased 3.6 trillion yuan compared to the first half of last year, which is the biggest increase in the same period in the past five years. For an economy as large as China, achieving 4.7% growth is invaluable. Although the growth rate declined somewhat in the second quarter, there was no change in the fundamentals of stable economic operation and improvement. Since this year, especially since the second quarter, there have been new changes in the world economy. Some international agencies expect the growth rate of major economies to decline to varying degrees in the second quarter. For example, the US is expected to fall back to 2.1% from 2.7% growth in the first quarter, Japan is expected to fall back to 0.2% from 0.4% growth in the first quarter, and the Eurozone is expected to grow by about 0.5%. The International Monetary Fund (IMF) recently lowered its global economic growth forecast to 3.0% this year, compared to 3.5% last year. However, it raised China's annual economic growth forecast by 0.2 percentage points. In terms of employment, the average unemployment rate in the urban survey was 5.2%, the same as the same period last year, down 0.1 percentage points from the first quarter. Looking at prices, CPI rebounded moderately, up 1.0% year on year, and core CPI rose 1.2%. Overall, it remained above 1% in the first half of this year. PPI changed from negative to positive. PPI rose 1.5% in the first half of this year and fell 0.6% in the first quarter. The CPI rose 1% year on year in the first half of the year. Both prices were within a reasonable range of 1%-2%. The overall price operation was relatively ideal, and it was at a moderate level of increase. This is not easy. Currently, inflationary pressure is rising sharply in most of the world's economies, and the IMF has also recently raised its global inflation forecast for the whole year to 4.7%. Under these circumstances, our prices have remained stable. Looking at the balance of payments, the scale of trade in goods reached a new high. Foreign exchange reserves stabilized at more than 3.4 trillion US dollars, and the RMB exchange rate appreciated by about 3% compared to the beginning of the year. Looking at comprehensive macroeconomic indicators, China's overall macroeconomic economy is stable, and the main indicators are operating within a reasonable range. This is what we call “stability.”
Mao Shengyong:
The second is “toughness.” The resilience of China's economic development continues to be demonstrated, and it has effectively addressed external risks and challenges. Looking at energy security and supply, the Middle East geopolitical conflict since March has seriously impacted global energy supply. China has focused on independent production and diversified imports on the other. In the first half of the year, domestic crude oil, natural gas, and electricity production all reached record highs. Industrial crude oil production above scale increased 0.9% year-on-year, natural gas increased 1.6%, and power generation increased 3.5%. Production of major energy products was stable, imports were autonomous and controllable, and energy supply was sufficient, which met all kinds of energy needs in production and life. Looking at market prices, the rise in energy prices has led to an increase in global inflationary pressure. The International Monetary Fund raised the global inflation forecast to 4.7% this year. In contrast, China's policy of securing supply and price stabilization was strong and effective, and the price control mechanism for refined oil products was initiated in a timely manner. The CPI increase was moderate and did not fluctuate much. Looking at food security, summer grain production surpassed 300 billion kg for the first time this year, further consolidating the foundation of food security, and laying a solid foundation for grain production, price stability, and people's livelihood security throughout the year. Looking at foreign trade, global trade growth is slowing down, but China's imports and exports have shown strong resilience. The total import and export volume of goods reached 25.5 trillion yuan in the first half of the year, with exports increasing by 13.4% and imports by 22.1%; in the first quarter, China's share of global trade increased by about 0.8 percentage points over the same period last year. In a complex and changing external environment, the resilience of the Chinese economy is very strong.
Mao Shengyong:
The third one is “new.” Accelerating steadily towards the new trend, the contribution rate of new kinetic energy exceeds 40%. New momentum includes not only high-tech industries, modern service industries, digital industries, etc., representing industry growth in new technologies and fields, but also traditional industries that have achieved green transformation, development, and quality upgrading through digital transformation. According to preliminary estimates, in the first half of this year, new momentum represented by high-end manufacturing, digital economy, and modern services contributed more than 40% to economic growth in the first half of the year. The characteristics of the economy moving towards new advantages are very clear, and the overall development trend is accelerating. For example, the value added of large-scale high-tech manufacturing increased 13.3% year-on-year in the first half of the year. Among them, the value added of the aerospace and equipment manufacturing, electronics and communication equipment industries increased by 16.3% and 17% respectively, while the integrated circuit manufacturing and intelligent vehicle equipment manufacturing industries related to artificial intelligence all maintained high growth of more than 30%. The pace of green transformation accelerated. In the first half of the year, the retail penetration rate of new energy vehicles exceeded 60% for three consecutive months, leading to a 39.3% increase in lithium-ion battery production. In recent years, the pace of transformation between old and new kinetic energy has continued to accelerate, and new momentum has continued to grow and expand, increasingly provoking the Chinese economy.
Mao Shengyong:
The fourth is “excellent.” Quality and efficiency have been optimized and improved, and economic development has achieved great success. First, the share of the manufacturing industry is rising steadily. The manufacturing industry is the foundation of the Chinese economy and an advantage of the Chinese economy. Looking at the first half of this year, the value added of manufacturing accounts for 26.2% of GDP, an increase of 0.4 percentage points over three years ago. The second is an improvement in corporate profits and expectations. In January-May, the profits of large-scale industrial enterprises increased 18.8% year-on-year. Since this year, double-digit growth has continued. In particular, industries related to new kinetic energy, such as electronics and non-ferrous metals, have a better profit situation. In June, the manufacturing PMI was 50.3%, and the service sector business activity index was 50.4%, up 0.3 and 0.1 percentage points from the previous month, respectively, indicating that market expectations were generally stable. Third, the intensity of energy consumption has decreased. Industrial structure optimization, continuous promotion of energy-saving technology, green and low-carbon transformation are driving a steady decline in energy consumption. According to preliminary estimates, energy consumption per unit of GDP fell 1.9% year-on-year in the first half of the year.
Looking at the above aspects, the current international situation is complex and changing. The world economy is generally slowing down, and inflationary pressure is clearly rising in most countries. Under these circumstances, the Chinese economy maintained a 4.7% growth rate in the first half of this year, while prices remained moderately rising, employment was generally stable, and the balance of payments improved. In particular, new momentum in emerging sectors accelerated growth and growth. The Chinese economy has achieved effective qualitative improvement and reasonable quantitative growth. Thank you.
Zhonghong.com reporter:
The monthly data on total retail sales of social consumer goods in China fluctuated in the first half of the year. The market is very concerned about this. How do you view the operation of the consumer market in the first half of the year? What was the overall economic trend in the second half of the year? Thank you.
Mao Shengyong:
Thank you for your question. Everyone is very concerned. The year-on-year growth rate of total retail sales of consumer goods in May was -0.6%. In June, this figure rebounded and turned into a 1.0% year-on-year increase. To observe the consumption situation in China, it is recommended to look at it from a full perspective, that is, the index reflecting total retail sales of goods and services is a little more complete. Total retail sales of social consumer goods is an indicator that has been used for a long time in the past, and only food and beverage is included in the service section. Looking at overall consumption, there was a positive increase in market sales, including goods and services, in January-May.
Regarding the fluctuation in growth rate in the second quarter, what do you think about the second half of the year and the whole year. First, what do you think of the decline in growth in the second quarter. First, the economic growth rate in the second quarter was 4.3%, down 0.7 percentage points from the first quarter, but the fundamentals of economic operation have not changed. The decline in growth in the second quarter compared to the first quarter was mainly due to some short-term factors and some external influences. For example, the petrochemical-related industry was affected by some external influences; in addition, coal production was affected by domestic short-term factors; other industries were normal. There is no change in the fundamentals of the economy running smoothly and moving towards the future. Second, from the perspective of current price growth, growth in the second quarter was actually better than in the first quarter, and the increase was higher than in the first quarter. 4.3% is a constant price growth rate. If you look at the current price growth rate, the second quarter grew faster than the first quarter. Judging from the current price, the current price of GDP in the second quarter of this year and the total current price of GDP in the second quarter of last year increased by 5.9%, 1 point faster than the first quarter. GDP increased by 2 trillion yuan in the second quarter, 400 billion yuan more than in the first quarter, that is, the total GDP was 2 trillion yuan higher than in the second quarter of this year; 1.6 trillion yuan more in the first quarter of this year and the first quarter of last year, and the second quarter increased more than in the first quarter. The increase in the second quarter of this year was not only higher than in the first quarter, but it was also more than 700 billion yuan more than the same period last year, which is a bit better from the perspective of current prices. Third, indicators reflecting new momentum performed well in the second quarter, indicating that the trend of growth and growth of new momentum continues. For example, the equipment manufacturing industry above scale grew by 9.7% in the second quarter, 0.8 percentage points faster than in the first quarter; the value added of the high-tech manufacturing industry increased by 14%, 1.5 percentage points faster than in the first quarter; and the electronics industry grew 14.8% in the first half of the year, with 16.1% growth in the second quarter, 2.5 percentage points faster than in the first quarter. The growth trend reflecting emerging fields and new momentum is still accelerating. The second quarter performed better than the first quarter. Fourth, looking at the second quarter, there was a gradual improvement between months. The indicators for industry, services, imports and exports, and PMI were better in May than in April, and June was better than May, so these indicators gradually improved in the second quarter. From these perspectives, fluctuations in growth rate in the second quarter should be viewed and analyzed comprehensively and objectively.
Regarding trends for the second half of the year and for the whole year. First, the economy grew by 4.7% in the first half of the year, laying a good foundation for achieving the main expected goals for the whole year, especially the growth target. Second, the new momentum directly contributed more than 40% to economic growth, and is still maintaining a very good development trend. It will continue in the second half of the year. New momentum is still very strong in supporting the economy and leading economic development. Third, traditional industries are being transformed and upgraded at an accelerated pace. The short-term impact of individual industries that declined in the second quarter was gradually eliminated. The external impact was not significant. There was a certain degree of autonomy and control, and they will gradually recover later. Fourth, policy effects continue to be implemented and shown results. The effects of the policies introduced earlier will continue to show. The central government will also introduce more active and promising policies in a targeted manner in accordance with changes in the situation to promote the smooth operation of the economy and the development of the new and better.
Taken together, there are solid conditions and support to achieve the main expected goals for the whole year, especially the expected economic growth target. Thank you.
Zhejiang Daily Chao News Reporter:
Just now, you mentioned in your announcement that high-tech manufacturing industries such as high-end artificial intelligence equipment performed well in the first half of the year, injecting new momentum into economic development. Excuse me, what are the highlights of the development of new kinetic energy since this year? Thank you.
Mao Shengyong:
Please ask Ms. Wang Guanhua to answer this question.
Wang Guanhua, press spokesperson of the National Bureau of Statistics and head of the National Economic Comprehensive Statistics Department:
Thank you for your question. In the first half of this year, the pace of conversion between old and new kinetic energy in China accelerated, and there were many highlights of technological and industrial innovation. Everyone had some intuitive feelings in normal production and life. For example, when walking into a factory workshop, intelligent production lines and industrial robots can be found everywhere. New energy vehicles, smart home appliances, etc. are gradually becoming popular in everyday life. These new industries and new demand for new products continue to build advantages for high-quality development, and also provide solid support for the steady, moderate and positive development of China's economy. Take a look at it specifically:
First, there is strong support for a number of new industries with high technical content and strong resilience. After years of layout and development, China's emerging industries have gradually grown and gained momentum. The value added of the large-scale high-tech manufacturing industry and the value added of the digital product manufacturing industry increased by 13.3% and 12.3% respectively in the first half of the year, which is faster than in the first quarter. In particular, demand for high-end computing power chips and memory chips has exploded due to changes in global artificial intelligence technology. In the first half of the year, the integrated circuit production of industrial enterprises above the size of China increased by 23.1%, and the production scale reached 279.8 billion yuan. This figure is huge. In terms of conversion, the average production of integrated circuits exceeds 1.5 billion yuan per day. An integrated circuit is the chip we usually talk about. It is widely used in intelligent equipment and electronic products. It produces more than 1.5 billion chips every day. It is not only a digital update, but also a vivid picture of the development momentum of China's semiconductor industry. In addition to integrated circuits, production of smart products such as 5G smartphones, 3D printing devices, and service robots has also maintained rapid growth; the average daily call volume has reached tens of billions of dollars, achieving a quantum leap forward, demonstrating the vitality and potential of the digital economy and smart economy. We have also made preliminary estimates for the industrial sector. In the first half of the year, new momentum represented by high-tech manufacturing and digital product manufacturing contributed nearly 50% of industrial growth with more than 20% of added value, which is an important engine driving industrial growth. The transformation and upgrading of the manufacturing industry has also driven the demand for professional services such as information technology, modern finance, R&D and design, and business services, opening up a broad space for growth in the modern service industry. In the first half of the year, the value-added growth rate of the information transmission software and information technology services, leasing and business services industries all exceeded 10%, contributing close to 1/4 of economic growth.
Second, a number of new products in line with the green and low-carbon trend are growing rapidly. Thanks to China's complete industrial chain and continuous technological iteration, China's competitive advantages in the fields of new energy, new materials, green equipment, etc. are becoming more and more prominent, and new economic growth points have been cultivated and formed. For example, the development of clean energy has led to an increase of 92.0% and 51.9% in production of nuclear power units and hydroturbine generators, respectively. Increased demand for new energy vehicles and energy storage led to a 39.3% increase in lithium-ion battery production. A number of outstanding green segments have also emerged within traditional industries such as petrochemicals and chemical fiber. The value added of the large-scale petroleum processing industry increased by 1.9%, but the biomass fuel processing industry grew by 33.0%; the traditional chemical fiber industry grew by 3.4%, but the bio-based materials manufacturing industry grew by 21.9%. It can be seen that new momentum not only exists in emerging industries and future industries, but traditional industries can also release new momentum and revitalize through transformation, upgrading, and digital transformation.
The third is the rapid release of a number of new demands adapted to industrial upgrading and quality consumption. The development of the industry is inseparable from being driven and driven by demand. Currently, both in the field of investment and in the consumer sector, it is showing many new characteristics and trends. Looking at the investment sector, enterprises pay more attention to R&D innovation and continue to increase investment in fields such as patent software databases. The share of investment in intellectual property products in fixed assets reached 13.8% in the first half of the year, an increase of 1.4 percentage points over the first quarter. In terms of consumption, smart green and healthy consumption has gradually become a new consumer trend. Since this year, the consumer goods trade-in policy has been optimized and implemented, and smart glasses have been included in the scope of subsidies. In the first half of the year, retail sales of wearable smart devices, including smart glasses, have more than doubled, and retail sales of energy-efficient household appliances have increased by more than 30%. The “entertainment+consumption” model such as concerts, music festivals, and sporting events continues to heat up, better meeting the needs of the masses for high-quality spiritual culture and immersive experiences.
Fourth, a group of new enterprises with a lot of innovation and vitality, which are deeply involved in segmented fields, are emerging. The main body of innovation is the enterprise, and the foundation for cultivating new quality productivity is also the enterprise. Over the years, a number of high-quality enterprises that are determined to innovate and dare to compete have emerged from all walks of life. Specialized and innovative “little giant” enterprises are typical examples of them. Currently, there are more than 17,600 national-level specialized, and innovative “little giant” enterprises, mostly distributed in key parts of the industrial chain. A large number of “little giant” enterprises are deeply involved in segmented fields, continue to solve problems, and practice “unique tricks”. They have not only effectively made up for shortcomings in the industrial chain, but also injected new momentum into economic development. In the first half of the year, the value added of large-scale, specialized, and new “little giant” industrial enterprises increased by 10.4% year-on-year. Another data is also worth paying attention to. In late June, the World Economic Forum released the latest batch of lighthouse factories. Half of the 16 new global lighthouse factories are from China. Lighthouse factories represent a benchmark for the digital intelligent transformation of the global manufacturing industry. Currently, the number of lighthouse factories in China ranks first in the world, showing the outstanding results of artificial intelligence and digital technology in empowering the transformation of the manufacturing industry.
The conversion of old and new kinetic energy is a systematic project. It cannot be achieved overnight. It takes a long period of hard work and continuous effort. In the next stage, we must insist on steady progress, adapt to local conditions, and continue to use efforts to cultivate and expand emerging industries, future industries, and transform and upgrade traditional industries to promote the smooth and continuous conversion of old and new kinetic energy. Thank you.
Dazhong News Dazhong Daily Reporter:
Consumer prices maintained a moderate upward trend in the first half of the year, and ordinary people are very concerned about this. Excuse me, how do you evaluate the price performance in the first half of the year? Against the backdrop of price fluctuations in the international market, what is China's price trend in the next stage? Thank you.
Mao Shengyong:
Please answer Ms. Wang Guanhua.
Wang Guanhua:
Thank you for your question. As you said, the price operation is related not only to macroeconomic operations, but also to the daily lives of ordinary people. Everyone is very concerned about it. The consumer price operation in the first half of this year had several characteristics:
First, consumer prices showed a moderate upward trend in the first half of the year. Consumer prices rose 1.0% year on year in the first half of the year. Among them, it rose 0.9% in the first quarter and 1.1% in the second quarter. The increase in the second quarter was 0.2 percentage points higher than in the first quarter. Since the fourth quarter of last year, consumer price increases have expanded for three consecutive quarters. This not only reflects changes in domestic consumer demand in related fields and the effects of early comprehensive regulation of “internal rolling” competition, but is also affected by recent fluctuations in international commodity prices. Looking at the core CPI, with the exception of January and February, which were affected by the Spring Festival and fluctuated quite a bit, the core CPI remained at 1% or above in other months, reflecting the impact of the release of consumer demand on prices. The field of cultural tourism and travel services is quite representative. In the first half of this year, when holidays such as “May 1st” were combined with spring vacations in primary and secondary schools in many places, residents' demand for travel services increased, and the popularity of family trips, parent-child trips, and study tours continued unabated. In the first half of the year, travel service prices in CPI rose 2.4% year on year, and service prices such as travel agency fees, hotel accommodations, and air tickets all showed an upward trend. Furthermore, artificial intelligence drives the iterative renewal of consumer electronics products, demand for related products is strong, and prices continue to rise. Prices of mobile phones and wearable smart devices rose 4.0% and 2.7%, respectively, in the first half of the year.
Second, consumer prices continued to rise moderately in June, with a slight decline from the previous month. Since February of this year, consumer prices have been fluctuating slightly in the range of 1% to 1.3%. The year-on-year increase in June was 1%, a slight drop of 0.2 percentage points from the previous month. The fluctuation was not significant. The decline was 0.3% month-on-month, mainly due to seasonal factors and price fluctuations in the international market. In June of this year, international gold prices and oil prices fluctuated downward. Domestic gold jewelry and gasoline prices fell 8.7% and 4.9%, respectively. In total, they affected the CPI decline by 0.22 percentage points month-on-month. This was also the main reason for the month-on-month decline in CPI. In addition, due to seasonal factors, food prices have also declined month-on-month. In particular, seasonal fruits and vegetables are on the market in large quantities. The market supply is sufficient, and the prices of fresh vegetables and fresh fruit have dropped by 1% and 2%, respectively.
Third, a reasonable recovery in consumer prices will help improve corporate profit expectations, stabilize confidence in market operations, increase residents' employment income, and smooth the circular state of the national economy. Looking ahead to the second half of the year, although fluctuations in international commodity prices will cause some disturbance to domestic prices, the Chinese economy has strong resilience, sufficient supply of livelihood commodities, and a strong and effective policy system to ensure stable supply and prices. As various policies to promote consumption continue to be implemented, demand for service consumption, upgraded consumption, and new types of consumption is expected to be released steadily, and consumer prices will continue to rise moderately. Thank you.
American International Market News Service Reporter:
What are the main reasons for recent fluctuations in fixed asset investment? Is this due to temporary factors such as early project launch in the first quarter and centralized debt repayment by local governments, or does it reflect weak investment demand?
Mao Shengyong:
Thank you for your question. Everyone is paying close attention to the fixed asset investment situation. In the first half of this year, the growth rate of fixed asset investment was negative, but it should be noted that the scale of fixed asset investment was still very impressive. In the first half of this year, the scale of fixed asset investment reached 22.6 trillion yuan, which is a huge figure. As China's development stage changes, especially from rapid growth in the past to a new stage of high-quality development, observing fixed asset investment, the investment structure, quality, and efficiency are more important and deserve our attention. Where is the investment going, whether it is profitable, and whether it is of quality, whether it is what we want, and whether it is in line with national policy direction, more important than the total amount and speed of fixed asset investment. Judging from the investment data for the first half of the year, investment played a huge role in promoting the development of new quality productivity, technological innovation, industrial upgrading, and improvement of people's livelihood and welfare. I'll give you a brief introduction on a few aspects.
First, investment in emerging sectors continues to “increase momentum.” All regions closely follow the deployment and requirements of developing new quality productivity according to local conditions, continue to increase investment in emerging industries, and lay out future industrial circuits. Investment in fields such as new energy, artificial intelligence, and integrated circuits is growing markedly. In the first half of the year, investment in high-tech industries increased 4.6% year-on-year, while investment in integrated circuit manufacturing, electronic special materials manufacturing, and lithium-ion battery manufacturing increased by 8.8%, 10%, and 24.4%, respectively. Corporate investment is increasing more and more in innovation. This characteristic is very obvious. In the first half of the year, investment in intellectual property products increased 9.4% year-on-year, 1.5 percentage points faster than in the first quarter. The growth of intellectual property products, including R&D and the digital economy, continued to accelerate and maintain a high level of growth. The optimized implementation of large-scale equipment renewal policies has stimulated the need for enterprise transformation and upgrading. Investment in the purchase of equipment and tools increased by 8.1% in the first half of the year.
Second, investment in new infrastructure is “beneficial in the long run.” Infrastructure construction is linked, on the one hand, to the development of social productivity, and on the other, to improving the convenience of people's lives. It is an important guarantee and support for high-quality development. Since this year, the “Six Zhang Network” has accelerated planning and construction. Traditional infrastructure and new infrastructure have been relayed forward, computing power networks and next-generation communication networks have accelerated the layout, and investment in related fields has grown rapidly, strengthening development momentum for digital and intelligent transformation and development. In the first half of the year, investment in the Internet and related services increased by 39.9% year-on-year, investment in the information transmission industry increased by 25.6%, investment in the optical fiber manufacturing industry increased by 26.5%, and investment in water transport and air transport increased by 19.8% and 11% respectively. By the end of May, the total number of 5G base stations in China had exceeded 5 million, accounting for 39% of the total number of mobile base stations; optical fiber access ports accounted for 96.7% of Internet broadband access ports.
Third, investment in the field of people's livelihood accurately “makes up for shortcomings.” Strengthening investment in people's livelihood is an important path to improving people's livelihood and welfare. All sectors paid more attention to the close integration of investment in goods and people, and solidly promoted the modernization of agriculture and rural areas and comprehensive rural revitalization. In the first half of the year, investment in agriculture and fishery increased by 6.7% and 12%, respectively. Projects such as ecological restoration and pollution control are progressing steadily, leading to a 5.9% increase in investment in environmental monitoring and treatment services.
Looking at the next stage, there are still broad prospects for expanding effective investment. Currently, China's per capita capital stock is significantly lower than that of developed countries. The gap also means that there is strong investment demand for the transformation and upgrading of traditional industries and promoting the development of emerging industries and future industries; adapting to changes in the population structure, there is also huge investment potential in fields such as “one old, one small” service, primary health care, the expansion of quality education, and the promotion of comprehensive rural revitalization. At present, the list of 800 billion yuan of “double” investment and construction projects and 200 billion yuan of equipment renewal funds have all been issued. The construction of the “six networks” is being promoted in an integrated manner, and special plans such as urban renewal, construction of a new energy system, and high-quality development of the industrial Internet have been implemented one after another. Various policies work together to stimulate investment vitality and unleash the potential for investment growth. Thank you.
Top News Reporter:
Since this year, the central government has launched a series of measures to stabilize the property market. Various regions have continuously adjusted and optimized local real estate policies in response to city policies. How effective are these policy measures? What are the current positive changes in the real estate market? Thank you.
Mao Shengyong:
Thank you to this journalist friend for the question. Real estate is an area that everyone is paying close attention to. In recent years, various regions have deployed city-specific policies in accordance with the decisions of the Party Central Committee, continuously optimizing and adjusting real estate policies, controlling growth, removing inventory, and improving supply, easing housing purchase restrictions in an orderly manner, deepening the reform of the housing provident fund system, increasing the supply of guaranteed housing, promoting the implementation of urban renewal and transformation, and working in both directions from both sides of supply and demand, and introduced a set of policy “combo punches”. Judging from the relevant data for the first half of the year, the results of the policy are gradually showing, and there have been some positive changes in the real estate market, including the following aspects:
First, commercial residential sales prices in first-tier cities have been rising for 4 consecutive months. Since March, sales prices of newly built commercial homes and second-hand homes in first-tier cities have been rising for 4 consecutive months. In March-June, sales prices of newly built commercial residential homes in first-tier cities increased by 0.1% to 0.2% month-on-month. Second-hand housing increased between 0.3 percent and 0.4 percent. The overall decline in commercial residential sales prices in second- and third-tier cities has narrowed. On a month-on-month basis, in June, sales prices of newly built commercial residential homes in second-tier cities changed from falling last month to flat, while sales prices of newly built commercial homes in third-tier cities fell 0.1 percentage points narrower than last month. On a year-on-year basis, the year-on-year decline in sales prices of newly built commercial homes in second-tier cities and second-hand residential sales prices in second- and third-tier cities were all narrower than last month.
Second, the area of commercial housing for sale across the country has been declining for 4 consecutive months. Inventory removal of commercial housing continues to advance, policies and measures continue to show results, and the area for sale of commercial housing has been reduced. At the end of June, the area of commercial housing for sale across the country fell 0.9% year on year. The decline was 0.5 percentage points higher than the previous month, and it was also the fourth consecutive month of decline. Among them, the area to be sold for less than three years decreased by 3.5%.
Third, second-hand housing transactions are quite active. As China's real estate market continues to adjust, the structure and total scale of real estate transactions are undergoing profound changes. The traditional incremental transaction pattern, which mainly focuses on new housing sales, is rapidly shifting to new housing and second-hand housing. Second-hand housing transactions have become an important part of housing transactions. According to data from relevant departments, the current second-hand housing transaction area is equivalent to the sales area of new housing. In the first half of the year, the second-hand housing online registration area increased 10.2% year on year, 2.5 percentage points faster than in January-May. If you look at the online signing of new homes and second-hand housing together, the total number of transactions has been growing continuously in the last three months.
Fourth, expectations in the real estate market have improved. According to a housing price questionnaire survey conducted by the National Bureau of Statistics in 70 large and medium-sized cities, real estate market practitioners expected price trends for new and second-hand housing to improve after the Spring Festival. In June, the share of real estate market workers who expect sales prices of newly built commercial homes to remain stable or rise in the next six months was 63.1%, remaining above 60% for 4 consecutive months, up 20 percentage points from last year's low.
Therefore, overall, the relationship between supply and demand in the real estate market has gradually improved, market expectations have rebounded, and there have been some positive changes in the market. In the next stage, it is necessary to continue to follow the decisions and arrangements of the Party Central Committee and the State Council, and promote the smooth and healthy operation of the real estate market due to the city's policies to control growth, remove inventory, and improve supply. Thank you.
Red Star News Reporter:
My question is that the service industry is a major focus of this year's work. The country held a national service industry conference and issued “Opinions on Promoting the Expansion and Quality Improvement of the Service Industry”, which made special arrangements to promote the high-quality development of the service industry. Excuse me, how was the service industry developing in the first half of the year? Thank you.
Mao Shengyong:
Please answer Ms. Wang Guanhua.
Wang Guanhua:
Thank you for your question. In the first half of this year, all parties thoroughly implemented the spirit of the National Service Industry Conference and introduced a number of supporting measures to promote the expansion of the capacity and quality of the service industry. Overall, the service industry grew steadily and played an important role in supporting industrial upgrading and meeting people's livelihood needs. It has several characteristics:
First, the service sector's contribution to economic growth has increased. In the first half of the year, the service sector added value of 41.4 trillion yuan, up 5.2% year on year, faster than the economic growth rate; accounting for 59.5% of GDP, it is the largest industry in the national economy; its contribution rate to economic growth reached 66.1%, an increase of nearly 6 percentage points over the same period last year, which is the driving force for economic growth.
The second is integration and innovation in the productive service industry. The deep integration of professional services and advanced manufacturing, such as information technology, modern finance, and modern logistics, has played an important role in promoting industrial upgrading and transformation. In the first half of the year, the value added of information transmission software and information technology services, leasing and business services increased by 10.7% and 11.9%, respectively, over the same period last year, contributing nearly 1/4 to economic growth. Financial services have strengthened the real economy, and the added value of the financial sector has increased by 6.7%, contributing more than 10% to economic growth. The transportation and logistics system operates efficiently. Every day, more than 550 million express deliveries shuttle through the streets and alleys, and more than 150 million tons of goods reach all sides, which strongly supports the stable operation of the industrial chain supply chain.
Third, the lifestyle service industry is expanding and improving quality. Focusing on meeting the diverse living needs of residents, the supply of various lifestyle services continues to increase. In the first half of the year, the scale of value added in the wholesale and retail industries, and the accommodation and catering industry increased by 5.7%. In the first five months, the operating income of residential service, repair and other service enterprises above the scale increased by 5.7%. Various regions continue to enrich integrated business formats such as “cultural tourism and sports business” to promote the intensive implementation of offline performing arts and events. The revenue of cultural, art, and sports enterprises above scale increased by 11.8% and 11.9% respectively in the first five months.
Fourth, the emerging service industry is nurturing and growing. In the first five months, the revenue of new strategic service enterprises above scale increased 6.1% year-on-year. New business formats such as online commerce, telemedicine, and digital entertainment continued to expand, driving e-commerce trading platform transaction volume growth of 3.5% in the first half of the year. At the same time, in line with the new trend of green travel and low-carbon consumption among residents, the layout of charging facilities is becoming more and more perfect, and the scope of application continues to expand. In the first half of the year, the transaction volume of key charging platforms increased by more than 30%.
Fifth, the opening up of the service industry to the outside world is expanding steadily. In recent years, China has continued to promote deeper opening-up to the outside world in key service fields such as tourism, transportation, finance, and telecommunications. In January-May of this year, total trade in services increased by 6% year-on-year, and the trade in services deficit narrowed by about 20%. The competitiveness of exports of high-technology and high-value-added services continued to improve, and exports of knowledge-intensive services increased by 12.2%. Furthermore, the service industry has been China's largest inflow of foreign capital for many years, and it has maintained a good momentum of development this year. In the first five months, the actual use of foreign capital in the service industry accounted for 72% of the country's actual use of foreign capital, demonstrating the appeal of opening up the service industry to the outside world.
Thank you.
Nanfang Daily Nanfang+ Reporter:
Since this year, various departments and regions have implemented in-depth special actions to boost consumption. How was service consumption and commodity consumption in the first half of the year? Thank you.
Mao Shengyong:
Thank you for your question. In the first half of this year, total retail sales of consumer goods and services increased 2.7% year on year. Total retail sales of social consumer goods changed from a year-on-year decline in June to a 1.0% year-on-year increase. Specifically, there are a few features worth paying attention to.
First, service consumption is growing well. As people's living standards improve, service consumption is increasingly becoming an important field to unleash consumption potential and expand consumption space. In the first half of the year, retail sales of services increased 5.3% year-on-year, 4.2 percentage points faster than retail sales of products. The cultural tourism consumer market continues to be active. Retail sales of travel consulting and rental services and cultural, sports and leisure services increased by 11.3% and 10.4% respectively in the first half of the year. According to relevant data, sales revenue from travel tours and entertainment services increased by 12.3% year-on-year. The share of service consumption expenditure is increasing. In the first half of the year, per capita service consumption expenditure as a share of consumer spending increased 0.2 percentage points over the same period last year. Everyone is concerned about the expansion of consumption. On the one hand, it is necessary to improve the quality and expansion of product consumption, and on the other hand, it is necessary to dig deeper into the potential for service consumption.
Second, improving the quality and expansion of commodity consumption. In the first half of the year, total retail sales of consumer goods were close to 25 trillion yuan, of which retail sales of goods exceeded 22 trillion yuan. Some upgraded consumer goods grew rapidly. Retail sales of cosmetics and communication equipment products per unit above the limit increased by 6.3% and 14.4%, respectively. Growth potential such as digital consumption and green consumption was unleashed at an accelerated pace, and more smart green products entered people's lives. In June, the retail penetration rate of new energy vehicles reached 62.8%, exceeding 60% for three consecutive months. Innovative retail formats aimed at quality consumption and digital convenience are booming. Retail sales of unit warehousing member stores and unattended stores above the limit all increased by more than 25%, and instant retail transactions achieved double-digit growth.
Third, new consumption growth points are showing vitality. Consumption in rural areas continues to be active. As the comprehensive revitalization of the countryside continues to advance, the county's commercial system and distribution facilities are continuously improved, and the consumption vitality of the rural market continues to show. During the “14th Five-Year Plan” period, the average annual growth rate of retail sales of consumer goods in rural China was about 0.3 percentage points faster than in urban areas. This trend continued in the first half of this year. Retail sales of consumer goods in rural areas grew 1.3 percentage points faster than in urban areas. New types of consumption are growing rapidly. In the first half of the year, cultural and sports service platform transaction volume increased 9.7% year on year. According to relevant data, sales revenue growth in immersive experiential categories such as theatrical performances and museums reached 28.3% and 24.6% respectively in the first half of the year. The popularity of inbound consumption continues unabated. China has optimized the visa-free entry policy and simultaneously optimized supporting services such as departure tax refunds and overseas mobile payments to facilitate overseas tourists to travel and shop in China. In the first half of the year, about 17.82 million foreigners entered the country without a visa, an increase of 30.6% over the previous year. Customs supervised a total of 19.9 billion yuan in duty-free shopping on the outlying islands of Hainan, an increase of 18.8%.
In the next stage, China will have good conditions for expanding consumption capacity and improving quality. China has a population of 1.4 billion. The population is large. The middle income group continues to grow and expand, and the per capita GDP is close to the level of high-income countries. Judging from the stage of development, the consumption structure is in the stage of transformation and upgrading, and residents' demand for high-quality products, leisure, culture and entertainment services is rising. As the country's unified market progresses further, the supply of high-quality consumption has increased, and policies to promote consumption have been effective. Recently, the “15th Five-Year Plan” to expand consumption was introduced. This is also conducive to promoting better consumption development, and is expected to drive the expansion and quality of consumption. In the next stage, efforts should be made to enhance residents' willingness and ability to spend, continuously optimize the consumption environment, take more measures to consolidate the foundation for consumption growth, and better unleash the consumption potential of China's hyperscale market. Thank you.
Xiaoli Shou:
Time is a matter of time, the last two questions.
Cover News Reporter:
This year, China's summer grain production overcame adverse effects and achieved a good harvest. It was not easy. What was the overall situation of the agricultural and rural economy in the first half of the year? Thank you.
Mao Shengyong:
Thank you. Let me give you a brief introduction. In the first half of this year, departments in various regions thoroughly implemented the decisions and arrangements of the Party Central Committee and the State Council on the “three rural areas” work, anchored the modernization of agriculture and rural areas, continued to improve agricultural production, increase farmers' income, and maintain a good momentum of development in the agricultural and rural economy. There are a few characteristics:
First, we had another good harvest of summer grains. Grain production this summer overcame adverse factors such as large-scale late sowing of winter wheat and heavy precipitation, and achieved an increase in production and good harvest. Summer grain production reached 301.49 billion kg, breaking the 300 billion kg mark for the first time, an increase of 2 billion kg over the previous year. Increased yield is the key to a good summer grain harvest. Summer grain yield is 378.8 kg per mu, an increase of 3.2 kg over the previous year.
Second, there is an adequate supply of “vegetable basket” products. In the first half of the year, the country's pork, beef, lamb and poultry production increased by 2.07 million tons over the same period last year, an increase of 4.3%. The pace of pig release has slowed down. In the first half of the year, pig sales increased 1.7% year on year, and the growth rate fell 1.1 percentage points from the first quarter, mainly because in response to the continued decline in pig prices, the country focused on increasing comprehensive regulation and control of production capacity, and the pace of reduction in breeding sows was accelerated, which is conducive to improving the supply and demand relationship in the pig market. Recently, pig prices have rebounded. Furthermore, vegetables and fruits have maintained steady growth, and ordinary people's dining tables are quite rich and secure.
Third, the agricultural and rural economy is stable, moderate and improving. In the first half of the year, the country's total agricultural, forestry, animal husbandry and fishery output increased by 3.9% year-on-year. Vigorously develop modern facility agriculture, driving a 6.7% year-on-year increase in fixed asset investment in rural areas. Furthermore, the income of rural residents continues to grow faster than in urban areas.
This year is a critical year for the “15th Five-Year Plan” to begin and accelerate the construction of an agricultural power. We are also organizing and carrying out the 4th National Agricultural Survey, a major survey of national conditions and national strength in accordance with the arrangements of the Party Central Committee and the State Council. This work is currently being carried out intensively. Earlier, we carried out special pilots and comprehensive pilots, and improved the survey plan. Currently, it is being reported to the State Council's Agricultural Census Leading Group for approval. Related work is being actively promoted, and many news reporters and media friends have given good attention and coverage. Through this agricultural survey, on the one hand, we need to figure out the basic situation in the three agricultural fields. The agricultural survey should be carried out once every ten years to understand and grasp the new situation and changes that have occurred in the agricultural production sector in China in the past ten years, especially as the technical level of agricultural production has improved, agricultural production organization methods have been further improved and optimized, new business formats in the agricultural production field, etc., as well as the results of the implementation of the Party Central Committee's “three rural areas” policy. Through this agricultural survey, we need to promote the comprehensive application of agricultural remote sensing technology in agricultural yield surveys to better monitor the planting area and growth of various types of crops. Through solid and effective statistics in the three agricultural fields, solid statistical data support is provided to promote high-quality agricultural development and build a strong agricultural nation. Thank you.
Xiaoli Shou:
One last question.
First Financial Correspondent:
We noticed a year-on-year increase in PPI in June, but there was a month-on-month decline. What does this mean? What are the main influencing factors behind it? Is it expected that the subsequent PPI will continue to run smoothly? Thank you.
Mao Shengyong:
Please answer Ms. Wang Guanhua.
Wang Guanhua:
Thank you for your question. Since this year, especially since March, industrial producers' ex-factory prices have shown a gradual upward trend due to factors such as rising international commodity prices and improving demand in some domestic industries. PPI rose 1.5% year on year in the first half of this year, with a 0.6% drop in the first quarter and a 3.6% increase in the second quarter. This is also the first time since the fourth quarter of 2022 that PPI quarterly increase has been corrected. Looking at monthly changes, PPI has been rising for four consecutive months since March. It rose 4.1% in June, a slight increase of 0.2 percentage points over the previous month. Looking at June, demand in some industries improved, and the price impetus for the production sector continues to show. In particular, the acceleration of the electrification process, the expansion of application scenarios for artificial intelligence, and the increase in demand for computing power have driven prices in non-ferrous, electronics, electrical machinery and other industries to continue to rise.
Everyone has also noticed that PPI declined after 8 months of continuous month-on-month increases in June, mainly due to the transmission effect of falling international crude oil prices, which does not mean that the relationship between supply and demand for domestic industrial products has fundamentally changed. In June, international crude oil prices fell sharply. According to World Bank data, the average price of international crude oil fell 18.6% month-on-month. Affected by this, prices in domestic petrochemical and other industries weakened markedly, which was the main reason for the month-on-month decline in PPI during the month. Looking at the main industries affected, ex-factory prices in the oil and gas extraction industry fell 11.8% month-on-month in June, while prices in the petroleum, coal and other fuel processing industries fell 1.9%. In addition, prices in the two related chemical and chemical fiber industries changed from rising to falling last month. Together, these four industries affected the PPI decline of about 0.38 percent month-on-month in the same month. Looking at other industries, production prices are generally stable. In particular, the smart green transformation has accelerated, driving prices in industries such as wearable smart device manufacturing, virtual reality equipment manufacturing, and biomass fuel processing to rise compared to the previous month. In June, prices in the coal mining and washing industry rose 5.6% month-on-month due to tight phased supply and increased demand for coal “peaking in summer.”
In the next stage, the smooth operation of PPI will still have good support. The accelerated integration of artificial intelligence and various fields, the demand for computing power has increased dramatically, and the market competition order is gradually being optimized, which may drive prices in related industries to rise. Although there are many external uncertainties and unpredictable factors, and international commodity price trends are still uncertain, China has a complete range of industries, strong industrial product production capacity, diversified energy import channels, sufficient reserves, and continuous improvement in the resilience of the industrial chain supply chain. It has the ability to withstand external risks and manage complex situations, and external import effects are generally manageable. Thank you.
Xiaoli Shou:
Thank you to the two publishers, and thank you to all our reporters and friends for participating. That's all for this morning's press conference. Good-bye everyone.
This article was selected from “China Net”, editor of Zhitong Finance: Feng Qiuyi.