China’s economy has been experiencing a steady improvement up to October this year even as the government policy “reducing overcapacity, lowering inventories, deleveraging, lowering costs and strengthening the weak links” takes effect, according to the National Bureau of Statistics (NBS).
In October, statistics reflect a 6% year-on-year increase in the total value added by industrial enterprises. An analysis by ownership type showed that the value added in state enterprises went up by 3%; by and between 4-5% in private local and foreign private enterprises but fell in collective enterprises.
The NBS said investments in fixed assets expanded over 8% in the first 10 months of this year and investments by state enterprises increased almost 21%, but investments by private enterprises grew a more subdued 3%.
The positive growth this year is reflected in the retail sales in China where it has held up well as purchases of consumer goods expanded 10% year-on-year in October. Certain categories of high value consumer goods also saw rapid growth. For instance, sales of office goods grew 13% while purchases of furniture expanded 11% and purchases of building and decoration materials increased 12%.
Building and construction investments are key drives of growth, but as the moves to curb building begin to take place, this will eventually trickle down to other consumer product sectors including wood products.