China's Industrial Output: A Steady October

The National Bureau of Statistics (NBS) of China has released its latest data, revealing a steady expansion in the country's industrial output. In October 2024, the value added of industrial enterprises above the designated size increased by 5.3% year-on-year. This growth rate is a testament to the resilience and adaptability of China's manufacturing sector, which continues to play a crucial role in the global economy.

From a month-on-month perspective, the value added of industrial enterprises above the designated size increased by 0.41% compared to the previous month. This modest increase can be attributed to the ongoing efforts to optimize production processes and improve efficiency within the sector. Additionally, the 5.8% year-on-year growth from January to October indicates a consistent and stable expansion in industrial output throughout the year.

The equipment manufacturing sector and the high-tech manufacturing industry contributed significantly to the 5.3% year-on-year growth in October. The equipment manufacturing sector's output climbed 6.6% from a year ago, which was 1.3 percentage points higher than the overall industrial output. The high-tech manufacturing industry also posted stellar performance, with its output up 9.4% year on year, outstripping the overall industrial output by 4.1 percentage points. This indicates the intelligent and green transformation of the country's manufacturing industry.

Comparing the 0.41% month-on-month increase in October to previous months in 2024, it is evident that the growth rate was relatively stable and in line with the overall trend in 2024. Although it was not as strong as the peaks experienced earlier in the year, the October growth rate reflects the ongoing efforts to maintain a balanced and sustainable expansion in industrial output.



From January to October, the sectors that experienced the highest year-on-year growth were the high-tech manufacturing industry (11.3% in April and 8.4% for the first four months), the production and supply of electricity, heat power, gas, and water (5.8% in April and 6.6% for the first four months), and the manufacturing of computers, communication equipment, and other electronic equipment (15.6% in April). On the other hand, the sectors with the lowest year-on-year growth were the mining and washing of coal (1.5% in April and 0.6% for the first four months), the extraction of petroleum and natural gas (0.7% in April and 2.1% for the first four months), and the manufacture of non-metallic mineral products (-1.5% in April and 0.4% for the first four months).

In conclusion, China's industrial output maintained a steady expansion in October, with the equipment manufacturing sector and the high-tech manufacturing industry contributing significantly to the growth. The month-on-month increase of 0.41% was relatively stable and in line with the overall trend in 2024. The sectors with the highest and lowest year-on-year growth from January to October highlight the diverse performance within the manufacturing sector. As China continues to prioritize the development of its manufacturing industry, investors and businesses can expect a consistent and stable expansion in industrial output, barring any unforeseen external shocks.