Caixin New Economy Index Inches Higher as Capital Investment Grows
The contribution of high value-added industries such as new information technology to China’s total economic inputs crept up in July, driven by an increase in capital investment from the previous month, a Caixin index showed.
The Mastercard Caixin BBD New Economy Index (NEI) came in at 28.8 last month, indicating that new economy industries accounted for 28.8% of China’s overall economic input activities. The reading was up from 28.6 in the previous month.
The NEI, which was released on Monday, aims to track the size of China’s nascent industries by using big data. It measures labor, capital and technology inputs in 10 emerging industries relative to those used by all industries.
The increase in last month’s NEI was mainly due to growth in the subindex for capital inputs. The subindex, which has a 35% weighting, rose 1.2 points month-on-month to 35.2 in July.
The subindex for labor inputs, which has a weighting of 40%, increased 0.7 points from the previous month to 23.8 in July.
The technology input subindex, which has a 25% weighting, fell 2.3 points month-on-month to 27.8 in July. This gauge measures the number of research personnel recruited by the tracked industries, and the number of inventions they have created and patents they have obtained.
Launched in March 2016, the NEI defines a new economy industry as a government-encouraged strategic new industry that is technology- and human capital-intensive but asset-light, and experiences sustainable and rapid growth.
Of the 10 tracked industries, the new information technology industry remained the largest contributor in July, making up 9.3 points of the NEI reading, up 1.3 points from the previous month.
The average monthly entry-level salary in the 10 industries, based on data compiled from online career and recruitment websites, grew to 12,799 yuan ($1,979) in July, 154 yuan lower than the previous month.
The monthly NEI reports are written by Caixin Data Technology Co. Ltd. and Chinese big-data research firm BBD, in collaboration with the National School of Development at Peking University.
Contact reporter Tang Ziyi (firstname.lastname@example.org) and editor Joshua Dummer (email@example.com)
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