Hefei, capital of East China's Anhui province, saw a 2.3 percent year-on-year rise in the consumer price index (CPI), a main gauge of inflation, during the first two months of 2016, according to statistics released at a meeting on March 26.
The municipal government held the meeting to analyze current economic situation, concluding that local economy remained sound from January to February, but the growth of most indicators were slowing down and downward pressures were gathering.
Consumer goods and real estate were the most flourishing markets in the Jan-Feb period. Retail sales of consumer goods experienced a double-digit increase, and property sales rose 35.5 percent, said a spokesman at the meeting.
31 out of 37 industrial sectors posted output growth. 1,664 out of 2,469 major industrial operators saw a year-on-year rise, and 2,150 small enterprises contributed to 75.2 percent of the entire sector's growth.
According to the municipal bureau of statistics, 14,400 market players registered in the city between January and February. As of Feb 29, there were 458,500 entities around Hefei, representing a year-on-year rise of 17.8 percent. Registered capital totaled 1.14 trillion yuan, up 47 percent from a year earlier.
Six leading industries increased value-added output by 8.2 percent year-on-year to 22.75 billion yuan, compared to the average growth of 7.5 percent, statistics showed. Topping the rankings were photovoltaic and green energy industries. The automobile sector followed, with a 23.1 percent increase in value-added output. The household appliances and equipment industries slowed down production hikes, while negative growth haunted information technology and food processing sectors.
The government said the city was still facing an economic downturn, as the growth of fiscal revenue and industrial value-added output slowed down, power consumption dropped and foreign trade slumped, for example.
23 Hefei-based enterprises cut back production worth 100 million yuan or more. Meanwhile, there were 47 fewer projects each worth at least 100 million yuan in operation during this Jan-Feb period than a year ago. In addition, the number of projects estimated at 1 billion yuan fell by 14.