Dip mainly caused by a fall in capital input, but labor index saw slight rise
Beijing – 7 September 2016 – The Mastercard Caixin BBD China New Economy Index (NEI) – jointly established by Mastercard and Caixin Media – finished at 28.5% for August 2016. The result indicates that the New Economy accounted for 28.5% of the overall economic input in August. This figure marks a 0.9 percentage point decrease from July’s score of 29.4, and a new low for 2016, but remains higher than the lowest value observed since August 2015.
The NEI is part of Mastercard’s global insight and research resources and provides an important indicator for measuring economic development in China. Through this critical source of market intelligence, Mastercard is supporting China’s economic transformation under the New Normal growth conditions. The NEI consists of three primary indicators, namely labor, capital and technology, which account for 40%, 35% and 25% respectively.
The drop in August was mainly caused by a fall in capital input, but the labor index saw a slight increase.
The labor input indicator exceeded 30 to reach 31.4 for the first time in March, followed by a continuous decline over the subsequent four months. In August, it rebounded slightly to reach 28.3, higher than figures for most months of 2015.
The capital input indicator has seen great fluctuations in the past six months, including a two-month robust rebound followed by two months of consecutive decline. It was just 26.1 in August, the lowest level since the NEI was established.
The technology input indicator was stable with a slight decline, reaching 32.1 in August, and was relatively robust among the three primary indicators.
“As a leading global innovator in the payment industry, Mastercard is committed to supporting research on China’s economic development and offering industry insights and macroeconomic analysis, while providing world-class payment products and solutions. Mastercard remains a major driving force behind the global new economy, and will continue to support China’s new growth model and sustainable economic transformation,” said Dennis Chang, President of Mastercard China.
The NEI is the fruit of a research partnership between Caixin Insight Group and BBD, in collaboration with the National Development School, Peking University.
The NEI measures the level of activity of the New Economy during China’s economic transformation compared with the traditional economy, or the old economy. It covers 111 sectors in 9 categories, including energy saving and environmental protection, the new generation of the information technology and information services industry, biomedicine, high-end equipment manufacturing, new energy, new materials, new energy automotives, advanced technical services and research and development, financial services, and legal services.
For more details, please visit: http://download.caixin.com/upload/201608NEI.pdf
Caixin Media is China’s leading media group dedicated to providing financial and business news through periodicals, online content, mobile applications, conferences, books and TV/video programs. Caixin Media aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms. Caixin Insight Group is a high-end financial data and analysis platform. For more information, please visit www.caixin.com.
Ling MA, Caixin Insight Group, firstname.lastname@example.org, 86 10 8590 5204
About BBD (Business Big Data)
BBD is a leading Big Data and quantitative business analytics firm specializing in the analysis of the high-growth industries emerging in Mainland China. Through dynamic data tracking, credit analysis, risk pricing and economic index construction, BBD provides its clients with a wide range of services at both the macro and micro level. For more information, please visit www.bbdservice.com.
CHEN QIN, Chief Economist, email@example.com, 86 28 65290823
Mastercard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. Mastercard products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MastercardAP and @MastercardNews, join the discussion on the Beyond the Transaction Blog and subscribe for the latest news on the Engagement Bureau.
Huanyu Wu, 86 10 8519 9304
Cindy Choo, 86 21 2411 0003
Click here to subscribe to real-time alerts.