Labor input indicator declined slightly, while technology input indicator rose
Shanghai – November 9, 2016 – The Mastercard Caixin BBD China New Economy Index (NEI) for October dipped to 29.2 along with a fall in capital input, which indicates the New Economy accounted for 29.2 percent of the overall economic input in October. This figure represents a 0.9 percentage point decrease from the September score of 30.1.
The NEI includes labor, capital and technology inputs, which account for 40 percent, 35 percent and 25 percent, respectively. As an important index for measuring economic development in China, the world’s largest market, the NEI is part of Mastercard’s global insight and research resources and a critical measurement tool that supports China’s economic growth in the ‘New Normal’.
The decline of the NEI in October was mainly caused by a fall in capital input, which has seen great fluctuations in the past six months. It declined to 27.9 in October after a rebound in September.
Labor input, which exceeded 30 to reach 31.4 for the first time in March before declining for the subsequent half year, dropped further to 28.9 – higher than in most months of 2015.
Technology input rose slightly to 31.3 in October.
The China New Economy Index was integrated with Mastercard in July 2016, and was subsequently renamed the “Mastercard Caixin BBD China New Economy Index”.
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 for the previous month is released at 10:00 AM on the 2nd day of each month.
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 nine 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; as well as financial and legal services.
For more details, please visit http://pmi.caixin.com/upload/10NEI.pdf.
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Huanyu Wu, 86 10 8519 9304
Cindy Choo, 86 21 2411 0003
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, email@example.com, 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, firstname.lastname@example.org, 86 28 65290823
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