China's industrial output exceeds expectations, driven by manufacturing and high-tech sectors

China's industrial production continues to exhibit robust growth, surpassing market expectations, with equipment and high-tech manufacturing sectors emerging as the new growth highlights.

According to data released by the National Bureau of Statistics (NBS) on Monday, the added value of Chinese industrial enterprises above designated size, an important economic indicator, increased by 5.3 percent year-on-year in June. For the first half of the year, the value-added industrial output a cumulative increase of 6 percent, with the first quarter growing by 6.1 percent and second quarter growing by 5.9 percent.

Notably, the manufacturing sector stood out among all industrial categories, recording a 6.5 percent increase in the first half of the year. Specifically, the output of the equipment manufacturing sector rose by 7.8 percent, while high-tech manufacturing surged by 8.7 percent, outpacing the overall growth rate of the industrial output by 2.7 percentage points.

The accelerated growth in industrial production has been driven by a monthly surge in the export of industrial products and continuous growth in profits among enterprises. The development pace of high-end, intelligent, and green manufacturing is quickening, contributing to the high-quality development and overall stable and positive performance of the industrial economy, Tang Weiwei, an official from the NBS said on Monday.

Notably, the electronics and automotive sectors grew rapidly in the first half of the year, with electronics growing by 13.3 percent and the auto sector jumping by 9.8 percent, contributing nearly 30 percent to the overall added value growth of the industrial output in the first half of the year.

Additionally, Monday's data revealed that the country's gross domestic product (GDP) grew 5 percent year-on-year in the first half of 2024. The figure also expanded 4.7 percent from a year earlier in the second quarter.

The NBS spokesperson noted that despite the rising uncertainty of external environment and ongoing domestic structural adjustments, the release of macro policy effects, improved external demand, and accelerated development of new quality productive forces have significantly supported China's economic growth.

From a medium- and long-term perspective, the stable operation and positive momentum behind the Chinese economy has not changed, nor has the trajectory toward high-quality development, the spokesperson added.