(Yicai) Nov. 15 -- Major economic indicators for production and consumption in China showed signs of improvement last month due to large-scale equipment upgrades, the consumer goods trade-in program, and a series of supportive policies.

China's retail sales of consumer goods totaled CNY4.54 trillion (USD828.1 billion) in October, up 4.8 percent year-over-year, accelerating from the 3.2 percent increase in September, according to data released by the National Bureau of Statistics today.

Last month, key indicators of production and demand saw significant recovery as market confidence improved, Fu Linghui, a spokesperson at the NBS, said at a press conference. Additionally, both the stock and real estate markets recorded increased transactions, as expectations among firms and consumers grew more positive. Fu added that these improvements will significantly stimulate market vitality, supporting the economy’s recovery and growth.

Thanks to the national trade-in program introduced in March, sales of home appliances and audio-visual equipment surged 39 percent last month from a year ago. Sales of stationery and office supplies jumped 18 percent while sales of furniture and automobiles increased 7 percent and 4 percent, respectively.

Growth in Equipment Manufacturing

The value added by major industrial companies increased by 5.3 percent in October, slightly down from the 5.4 percent growth seen in September. Fu explained that the extreme weather in September prompted increased production in energy companies, which resulted in a smaller increase for last month.

The value added by large manufacturing enterprises rose 5.4 percent, up from the earlier 5.2 percent addition. Exports also benefited from this growth, with industrial exports rising 3.7 percent, up from September's 3.4 percent increase.

The strongest performing sector was equipment manufacturing, which saw its added value surge by 6.6 percent, driven by industrial upgrading and trade-in policies. Specifically, the auto manufacturing sector saw a 6.2 percent boost, and firms in the computer, communications, and electronic equipment sector expanded by 10.5 percent.

Recovery of Fixed-Asset Investment

Fixed-asset investment totaled CNY42.32 trillion (USD5.85 trillion) in the first 10 months, up 3.4 percent year-over-year, maintaining the growth rate seen in the first nine months. Excluding real estate development, fixed-asset investment grew at 7.6 percent. Investment in infrastructure rose 4.3 percent and funding in manufacturing gained 9.3 percent. However, real estate development saw a 10.3 percent decline.

Supportive policies encouraged companies to invest in new machinery. From January to October, purchases of equipment and instruments rose by 16.1 percent, accounting for nearly 15 percent of total investment, contributing over 60 percent of the overall growth.

In the first 10 months, infrastructure investment climbed by 4.3 percent, up 0.2 percentage point from the January-September increase. Fu predicted that the introduction of new policies and recent debt relief efforts would make local governments more capable of enhancing infrastructure.

Editors: Shi Yi, Emmi Laine