(Yicai) Sept. 15 -- China’s key economic indicators for last month showed steady growth as a slew of supportive policies help boost the manufacturing and services sectors and spur demand, according to the latest data.

The total retail sales of consumer goods advanced 4.6 percent in August from the same period of last year, according to figures published by the National Bureau of Statistics today. This was a big jump from July’s 2.5 percent growth.

And the value-added output of industrial enterprises above a designated size, which measures the activity of designated large enterprises with annual turnover of at least CNY20 million (USD2.8 million), climbed 4.5 percent year on year, an increase of 0.8 percentage point from July’s gain.

Both the Chinese and the world’s economy will continue to face challenges, but China’s economy boasts strong resilience, great potential and plenty of vitality, Fu Linghui, spokesperson with the NBS, said during the press briefing today. As macroeconomic policies gradually take effect, China’s economy should continue the upward trend.

An uptick in consumption has played a significant role in economic recovery, Liu Xiangdong, chief analyst at East Spring Equity Investment Fund Management, told Yicai. There has been a lot of spending on services such as tourism and dining out over the summer and there has also been growth in car purchases.

The low base line last year due to the Covid-19 outbreaks, together with a boost in people’s purchasing confidence brought about by the latest tax breaks, supported the yearly growth in August’s total retail sales of consumer goods, Liu added.

During the first eight months, the country’s fixed-asset investment climbed by 3.2 percent annually, a dip of 0.2 percentage point from the growth rate in the first seven months.

Investment in property development plunged 8.8 percent over the period, a widening of 0.3 percentage point from the first seven months and this contributed to the drop in fixed-asset investment. While investment in the manufacturing sector over the period increased 5.9 percent, up 0.2 percentage point from the first seven months and the first expansion this year.

More special bonds will be issued this month and banks will release plenty of supporting funds, said Wang Qing, chief macro analyst at Golden Credit Ratings. There is likely to be more growth in infrastructure investment which will become an important factor in hedging against the drop in real estate investment and boost the momentum of economic recovery.

The growth of investment in the upgrading of technologies and high-tech equipment will be more sustainable in future, thanks to recent financial support, said Wu Chaoming, deputy director of the Chasing Research Institute. Impacted by tumbling global demand and the high base line in the same period of last year, investment in the manufacturing sector will likely face some downward pressure in the next few months.

As companies continue to destock, and as strengthened macro policies take effect, there will be more production, Wu said. However, in the near future, demand for investment such as in infrastructure will probably decline and global demand is also very uncertain, so the recovery of the value-added output of industrial enterprises should not be overestimated.

Editors: Xu Wei, Kim Taylor