On November 22, the Shandong Provincial Bureau of Statistics reported that from January to October 2023, the province’s economy continued to demonstrate a steady and improving trajectory with enhanced quality.

1. Industrial Production Remains Steady

From January to October, the value added of industrial enterprises above designated size in Shandong grew by 5.5% year-on-year, up 0.2 percentage points from the first three quarters. In October alone, growth reached 7.2%.

Out of 41 major industrial sectors, 30 sectors achieved positive growth, accounting for 73.2% of the total. Notably, the food, chemical, and electronics industries saw rapid growth, with increases of 19.6%, 20.0%, and 19.1% respectively—outpacing the average by 14.1, 14.5, and 13.6 percentage points.

2. Steady Recovery in the Service Sector

In the first three quarters, revenue from service enterprises above designated size rose 11.1% year-on-year. Among 10 major service categories, 8 reported growth. Of 32 specific industries, 24 achieved positive performance, with a growth coverage of 75.0%.

• Revenue from information transmission, software, and IT services grew 14.6%, outpacing the sector average by 3.5 percentage points.
• Leasing and business services grew 13.8%, 2.7 percentage points higher than the average.

3. Demand-Side Recovery Provides Stronger Momentum

• Fixed asset investment rose 6.6% year-on-year, continuing a four-month upward trend since July.
• Secondary industry investment surged 14.9%, accounting for 33.4% of total investment, up 2.4 percentage points year-on-year.
• Tertiary industry investment grew 2.9%, with a 64.9% share.

4. Foreign Trade Growth Stabilizes

In October, Shandong’s total imports and exports grew 2.4% year-on-year, up 4.5 percentage points from September. From January to October:

• Total trade volume reached 2.7 trillion yuan, a 13.9% increase.
  • Exports rose 17.5%, imports rose 8.8%.
• Trade with RCEP countries and Belt and Road partners rose 23.4% and 37.8%, respectively.
• Private enterprises led the way, with trade volume up 18.2%, accounting for 73.2% of the province’s total.

5. Deepening Transition from Old to New Growth Drivers

• In October, high-tech manufacturing grew 14.2%, 7 percentage points above the overall industrial average and 2.3 points faster than in September.
  • Production of smartwatches, service robots, and new energy vehicles grew 117.6%, 50.0%, and 68.8%, respectively.
• “Four New” Economy Investment (referring to new technologies, new industries, new business models, and new forms) increased 14.2%, 7.6 points higher than total investment.
  • High-tech manufacturing investment rose 35.7%, accounting for 21.3% of manufacturing investment (up 3.4 points YoY).
  • Investment in aerospace equipment, computers and office devices, and information chemicals more than doubled.

6. Digital Economy and Online Consumption Accelerate

Driven by the digital economy, online consumption continues to expand:

• Online retail sales of enterprises above designated size reached 97.87 billion yuan, up 20.8%, accounting for 12.7% of total retail sales—2 percentage points higher YoY.

7. Market Vitality and Business Environment Improve

• By the end of October, Shandong had 13.933 million market entities, up 7.6% year-on-year.
• Public finance and credit support were strong:
  • General public budget revenue grew 5.3%.
  • End-of-October outstanding loans (local & foreign currency) totaled 12.3 trillion yuan, up 11.8%.
    • Medium-to-long term loans in manufacturing grew 27.1%.
    • Inclusive finance loans for SMEs increased 26.6%.
• Industrial electricity consumption in October rose 1.7%, with cumulative growth of 0.6% from January to October.
• Freight transportation improved:
  • Rail freight: 204.61 million tons, up 8.6%
  • Waterway freight: 172.43 million tons, up 7.9%
  • Coastal port throughput increased 6.7%

8. Social Wellbeing and Stability Enhanced

• Employment remained stable:
  • From January to October, 1.064 million new urban jobs were created, fulfilling 96.7% of the annual target.
  • In October alone, 116,000 new jobs were added, a 32.1% MoM increase.
• Public investment in social sectors increased significantly:
  • Healthcare: +61.0%
  • Education: +22.2%
  • Sports: +21.7%
• Consumer prices rose 1.7% year-on-year; in October, prices rose 1.9% YoY and 0.1% MoM, remaining in a moderate range.
• PPI (Producer Price Index):
  • Ex-factory prices up 6.3% (down 0.8 pts vs. Q1–Q3)
  • Purchase prices up 6.7% (down 0.6 pts vs. Q1–Q3)