New Economy Index Dips to Over Three-Year Low
The contribution of high value-added industries to China’s overall economic inputs dropped in February for the third month in a row to its lowest in more than three years, due to a decrease in capital inputs in country’s new economy industries, according to a private index released on Saturday.
The Mastercard Caixin BBD New Economy Index (NEI) dropped to a reading of 27.4, indicating that new economy accounted for 27.4% of overall economic input activity. The monthly reading is the lowest in available data dating back to October 2015.
The index measures labor, capital and technology inputs in 10 emerging industries relative to those used in all industries.
The drop in the reading of last month’s index was mainly due to a large drop in the subindex for capital inputs, which fell to 26.1 in February from 31.4 the previous month. Among the three subindexes that make up the NEI, capital inputs have a weighting of 35%.
The subindex for labor inputs, which has a weighting of 40%, was relatively stable last month, slipping 0.4 to a reading of 26.7. The technology input subindex has been on an uptrend since July 2018, coming in at 30.4 last month, up 2.4 from January.
Launched three years ago, the NEI defines a new economy industry as one that is labor- and technology-intensive but asset-light; experiences sustainable and rapid growth; and is in a strategic sector encouraged by the government.
The new information technology industry made the largest contribution to the NEI in February. The energy conservation and environment protection industry posted the biggest input growth gain in February, providing the second largest contribution of 4.7 percentage points. Advanced materials posted the largest drop in February, falling to sixth place from third in the previous month and contributing 1.8 percentage points in February.
The average monthly entry-level salary in new-economy sectors, based on data compiled from online career and recruitment websites, was 10,627 yuan ($1,585) in February, increasing from January's level of 10,541 yuan.
The monthly NEI reports are compiled by Caixin Insight Group — a financial data and analysis platform of Caixin Media, and Chinese big-data research firm BBD, in collaboration with the National School of Development at Peking University.
A previous version of this story incorrectly stated how long it had been since the index had fallen below February’s reading of 27.4. That reading was the lowest since October 2015.
Contact reporter Leng Cheng (firstname.lastname@example.org)
Feb 19 17:55
Feb 19 15:55
Feb 19 13:28
Feb 19 10:54
Feb 19 07:33
Feb 18 17:00
Feb 18 16:06
Feb 18 13:37
Feb 18 05:43
Feb 18 05:18
- 1Coronavirus Latest (Feb. 1 - 15): Cases Surge Past 66,500 as France Reports First Death
- 2Four Deaths in One Family Show Danger of Wuhan’s Home Quarantine Policy
- 3Coronavirus Among Medics More Widespread Than Reported, Research Shows
- 4Even With Massive Funding, Coronavirus Vaccine Isn’t Coming Soon
- 5Coronavirus Sunday Update: Taiwan Reports First Death, Wuhan Virology Institute Denies Rumors
- 1Power To The People: Pintec Serves A Booming Consumer Class
- 2Largest hotel group in Europe accepts UnionPay
- 3UnionPay mobile QuickPass debuts in Hong Kong
- 4UnionPay International launches premium catering privilege U Dining Collection
- 5UnionPay International’s U Plan has covered over 1600 stores overseas