• In the first half of the year, China's economy was on the whole stable and moderately strong

In the first half, facing the complicated severe environment at home and abroad, all regional departments new era to xi jinping, the thought of socialism with Chinese characteristics as a guide, fully implement the party's 19 large and the third plenary session of the 19th session of 2, spirit, insist on maintaining stability work always tone, firm practice of new development concept, the requirements for active on the high quality watch, overcome difficult, solid work, the national economy continued to the good development momentum of the overall smooth and steady, structure adjustment was deepened, the old and new momentum in the transformation, steadily improving the quality benefit, good start towards a high quality and economic development.

Preliminary calculations show that China's GDP reached 418,96.1 billion yuan in the first half of the year, up 6.8 percent year-on-year at comparable prices. In terms of quarters, the first quarter saw a year-on-year growth of 6.8 percent, and the second quarter saw a growth of 6.7 percent, maintaining a range of 6.7 percent to 6.9 percent for 12 consecutive quarters. By industry, the added value of the primary industry reached 2,208.7 billion yuan, up 3.2 percent year-on-year. The added value of the secondary industry reached 16929.9 billion yuan, up by 6.1%. The added value of the tertiary industry reached 2,2757.6 billion yuan, up 7.6 percent.

图1 国内生产总值增长速度（季度同比）

CPI

In June 2018, the national consumer price index rose 1.9 percent year-on-year. Among them, urban areas rose by 1.8%, while rural areas rose by 1.9%. Food prices rose 0.3 percent and non-food prices rose 2.2 percent. Consumer prices rose 1.5 per cent and service prices rose 2.4 per cent. In the first half of the year, the national consumer price index rose by 2.0% compared with the same period last year.

Figure 2 consumer price rise (monthly year-on-year)

     Consumer prices fell 0.1 per cent in June from the previous month. Among them, the cities were flat, while the rural areas declined by 0.1%. Food prices fell 0.8 per cent and non-food prices rose 0.1 per cent. Consumer prices fell 0.2 percent and service prices rose 0.2 percent.

PPI

     In June 2018, producer prices nationwide rose 4.7 percent year-on-year and 0.3 percent month-on-month. Prices for industrial producers rose 5.1 per cent year on year and 0.4 per cent month on month. Producer prices rose 3.9 percent in the first half from a year earlier, while producer prices rose 4.4 percent.

PMI

In June 2018, China's manufacturing purchasing managers' index (PMl) was 51.5%, down 0.4 percentage points from the previous month and still 0.2 percentage points higher than the average of the first half of the year, indicating that the overall manufacturing sector continues to expand.

In terms of business size, the PMI for large enterprises was 52.9 percent, down 0.2 percentage points from the previous month and above the critical point. The PMI for medium-sized enterprises was 49.9 percent, down 1.1 percentage points from the previous month and below the critical point. The PMI for small businesses was 49.8 per cent, up 0.2 percentage points from the previous month and still below the tipping point.

From various aspects of specific data:

The agricultural planting structure was optimized and the production situation was good

Grain planting structure adjustment, the national summer grain is expected to obtain a better harvest. The supply-side structural reform of agriculture was deepened, and the area sown with cotton and soybean increased. Animal husbandry production is stable.

The service sector grew rapidly and emerging services boomed

In the first half of the year, the national service industry production index increased by 8.0% year-on-year, down by 0.1 percentage point from the first quarter, maintaining a relatively fast growth rate. Among them, information transmission, software and information technology services, leasing and business services maintained rapid growth. In June, the national service sector production index rose 8.0% from a year earlier. In l-may, operating income of service enterprises above designated size increased by 13.3% year-on-year, 0.2 percentage points faster than the same period last year. Revenue from strategic emerging services, science and technology services and high-tech services increased by 18.1 percent, 17.5 percent and 15.4 percent, respectively, 2.4, 5.0 and 4.5 percentage points higher than the same period last year.

Household consumption and market sales grew steadily, and consumption of upgraded goods grew rapidly

In the first half of this year, China's per capita consumer spending reached 9,609 yuan, up 8.8 percent year-on-year in nominal terms and 1.2 percentage points faster than in the first quarter. The per capita consumption expenditure of urban residents increased by 6.8% in nominal terms, up by 1.1 percentage points. Rural per capita consumption expenditure grew by 12.2 percent in nominal terms, accelerating by 1.2 percentage points. In the first half of the year, total retail sales of consumer goods reached 180.18 billion yuan, up by 94% year-on-year, down by 0.4% from the first quarter.

Household income grew steadily and the employment situation remained stable and stable

In the first half of this year, the national per capita disposable income was 14,063 yuan, up 8.7 percent in nominal terms and 6.6 percent in real terms after adjusting for inflation. Per capita disposable income of urban residents was 19,770 yuan, up 7.9% year on year in nominal terms and 5.8% in real terms after adjusting for prices. The per capita disposable income of rural residents was 7,142 yuan, up by 8.8 percent in nominal terms and 6.8 percent in real terms after adjusting for prices. The per capita income gap between urban and rural residents was 2.77 times, 0.02 times smaller than the same period last year. The national median per capita disposable income was 12,186 yuan, a nominal increase of 8.4 percent year-on-year. In June, the surveyed urban unemployment rate was 4.8 percent, unchanged from the previous month and down 0.1 percentage point from the same month last year. The surveyed unemployment rate in 31 major cities and towns was 4.7 percent, unchanged from the previous month and 0.2 percentage points lower than the same month last year.

Consumer prices rose moderately and industrial prices rose steadily

In the first half of the year, the national consumer price index rose by 2.0 percent year-on-year, down 0.1 percentage point from the first quarter. By category, food, tobacco and alcohol prices increased by 1.4%, clothing by 1.1%, housing by 2.3%, household goods and services by 1.6%, transportation and communications by 1.2%, education culture and entertainment by 2.1%, health care by 5.5%, and other goods and services by 1.1%. In June, China's consumer price index rose 1.9 percent year-on-year, 0.1 percentage point higher than the previous month, and 0.1 percent lower than the previous month. In the first half of the year, producer prices rose 3.9 percent year-on-year, an increase of 0.2 percentage points over the first quarter. Prices for industrial producers rose 4.4 percent year-on-year. Producer prices rose 4.7 per cent year-on-year in June, 0.6 percentage points higher than the previous month and 0.3 per cent higher than the previous month. Prices for industrial producers rose 5.1 percent year on year and 0.4 percent month on month.

Significant progress was made in transformation and upgrading, and new drivers of growth accelerated

The economic structure continued to improve. In terms of industrial structure, in the first half of the year, the added value of the tertiary industry grew 1.5 percentage points faster than that of the secondary industry. It accounted for 54.3 percent of the GDP, 0.3 percentage points higher than the same period last year, and 13.9 percentage points higher than the secondary industry. From the perspective of demand structure, the contribution of final consumption expenditure to economic growth is 78.5%, higher than the total capital formation by 47.1 percentage points. New industries and products are growing rapidly. In terms of industrial structure, the added value of strategic emerging industries grew by 8.7 percent year-on-year in the first half of the year, 2.0 percentage points faster than that of industries above designated size. The output of new energy vehicles increased by 88.1 percent year-on-year, industrial robots by 23.9 percent and integrated circuits by 15.0 percent. New consumption is booming. In terms of trade structure, China's online retail sales reached 4,081 billion yuan in the first half, up 30.1 percent year-on-year. Among them, the online retail sales of physical goods reached 3,127.7 billion yuan, up by 29.8%, accounting for 17.4% of the total retail sales of consumer goods, an increase of 3.6 percentage points year-on-year. The online retail sales of non-physical commodities reached 953.3 billion yuan, up by 30.9%. Steady progress was made in green development. In terms of energy conservation and emission reduction, energy consumption per unit of GDP fell by 3.2% year-on-year in the first half of the year.

Supply-side structural reform was further advanced, and market expectations were generally positive

Structural overcapacity reduction will continue to deepen. In the first half of the year, China's industrial capacity utilization rate was 76.7 percent, 0.2 percentage points higher than the first quarter and 0.3 percentage points higher than the same period last year. The destocking effect is outstanding. At the end of June, the area available for sale nationwide was down 14.7 per cent from a year earlier. Corporate leverage and costs continue to fall. At the end of may, the asset-liability ratio of industrial enterprises above a certain size was 56.6%, down 0.6 percentage points year-on-year. From January to may, the cost per hundred yuan of main business income of industrial enterprises above designated size was 84.49 yuan, down by 0.31 yuan year-on-year. Investment in the weak areas grew rapidly. In the first half of the year, investment in ecological protection, environmental protection and agriculture grew by 35.4 percent and 15.4 percent year-on-year, respectively, outpacing total investment by 29.4 percent and 9.4 percent respectively. The market is expected to remain buoyant. In June, the composite PMI output index was 54.4 per cent, the manufacturing purchasing managers' index was 51.5 per cent and the non-manufacturing business activity index was 55.0 per cent, continuing to operate in expansion territory.

In general, in the first half of the year, the national economy continued to develop steadily and steadily, with more favorable conditions supporting the economy to achieve high-quality development, laying a good foundation for achieving the major economic and social development goals of the year. However, we should also note that the external environment is more uncertain and domestic structural adjustment is in a crucial period. Insist on maintaining stability work always tone, maintain strategic concentration, insisting on the supply side structural reform as the main line, continue to expand effective demand, focus on the revitalization of the real economy, actively cope with the challenge of external and dissolve the risk hidden danger for the prevention of lead stable social expectations, science as a whole to promote steady growth, promoting the reform, restructuring, livelihood and prevent the risk of each work, to ensure healthy steady economic operation.