Explanatory Notes on Main Statistical Indicators
Saving Deposits of Urban and Rural Residents refer to the total value of savings deposits of urban and rural households in banks and rural credit cooperatives at a given point of time, including the saving deposits of urban residents and the saving deposits of rural residents. The cash in hand by residents and the deposits of organizations such as enterprises, military units, government agencies, institutions, etc. are not included.
Engel Coefficient refers to the percentage of expenditure on food, cigarette and alcohol in the total consumption expenditure, using the following formula:
Engel Coefficient = (expenditure on food, cigarette and alcohol / total consumption expenditure) x 100%
Households Survey on Income and Expenditures and Living Conditions
Since the fourth quarter of 2012, the NBS has launched its reform on the household survey programme, to form an integrated survey, instead of the two separate urban and rural household surveys. The reform regulates the division of urban and rural areas, integrates the concepts, classifications and standards, conducts the integrated household survey, and collects household data in the whole country thereafter.
1. Disposable Income of Households
Disposable Income of Households refers to the income of households for purpose of final expenditure and savings. It includes income both in cash and in kind. By sources of income, disposable income includes four categories: income from wages and salaries, net business income, net income from properties and net income from transfer.
Income from Wages and Salaries refers to remuneration of labour and salaries from all kinds of sources, including those employed by other units or individuals, freelance work, part-time jobs, and sporadic labour.
Net Business Income refers to net income earned by households and their members engaged in production and business activities. It refers to the net income of operating revenue minus operating costs, depreciation of productive fixed assets, and production tax. The formula is:
Net Business Income=Operating Revenue-Operating Costs-Depreciation of Productive Fixed Assets-Production Tax
Net Income from Properties refers to the net income received as returns by households or members of financial assets, non-financial assets such as housing, to other institutions, households or individuals, and minus relevant costs. Net income from properties includes net income of interest, bonus income, net income of saving insurance, net income of rents of transferring management right of contract land, income of renting housing, income of renting other assets, net converted rents of self-owned housing. Net income from properties do not include premium of transferring ownership of assets.
Net Income from Transfer The formula is:
Net Income from Transfer=Income from Transfers-Expenditure from Transfer
Income from Transfer refers to the regular transfer from country, institutions, social communities to households and between households. It includes old-age and retirement pension, regular donation and compensation, applying for medical fees, supporting income between households, income from non-usual-residing members of households, etc. Income from transfer do not include presents in kinds between households.
Expenditure from Transfer refers to regular or deontic transfer from households to country, institutions, households or individuals. It includes taxes paid, expenditure of all kinds of social security, supporting expenditure, regular donation and compensation and other regular transfer expenditure, etc.
2. Consumption Expenditure of Households
Consumption Expenditure of Households refers to all expenditure of households for living expenditure to satisfy family daily living. It includes expenditure in cash and in kind. It includes eight categories: food, tobacco and liquor; clothing; residence; household facilities, articles and services; transport and communications; education, cultural and recreational activities; health care and medical services, and miscellaneous goods and services.
Food, Tobacco and Liquor refers to expenditure for food, tobacco and liquor of all kinds.
Clothing refers to expenditure related to clothing, including clothes, clothing materials, footwear, other clothing and accessories, processing services related to clothing.
Residence refers to expenditure related to residence, including housing rents, water, electricity, fuel, property management, and including converted self-owned housing rents.
Household Facilities, Articles and Services refers to expenditure for family and individual articles for living purpose and family services. It includes furniture and interior decoration, home appliances, home textiles, household miscellaneous daily articles, personal articles, and family services.
Transport and Communications refers to expenditure for transport and communication and related services, maintenance and repairs, and vehicle insurance.
Education, Cultural and Recreational Activities refers to expenditure on education, cultural and recreational activities.
Health Care and Medical Services refers to expenditure on drugs, supplies and services of medical and health care. It includes medical appliances and drugs, and medical services.
Miscellaneous Goods and Services refers to expenditure of all kinds of expenditure of other articles and services that can’t be divided into the category above.
Explanatory on Inidcators before 2012
Prior to 2012, household surveys in China were conducted separately in urban and rural areas. Statistical coverage of indicators of household income and expenditure of urban and rural households were different, data were not comparable completely. Disposable income was surveyed in urban households, and net income was surveyed in rural households. Income and expenditure of urban households refer to that in cash, not including physical payments; Among which, when calculating per capita disposable income and consumption, self-owned housing conversion rental is not included, and expenditure of purchasing housing is not included either. Income and expenditure of rural households are divided into that of total and in cash, that is, total income and expenditure include self occupied physical payments; Among which, when computing per capita net income and expenditure of rural households, self-owned housing conversion rental is not included, but purchasing of housing is included in consumption expenditure of rural households.
For comparable reason, data prior to 2012 in this yearbook were still original urban households and rural households survey.
1. Urban Household Survey
Population of Urban Households refer to members of households living and sharing economically together in the urban areas. All the income and expenditure of all the members of such households are included in the income and expenditure of the household.
Disposable Income of Urban Households refers to the actual income at the disposal of members of the households which can be used for final consumption, other non-compulsory expenditure and savings. This equals to total income minus income tax, personal contribution to social security and subsidy for keeping diaries in being a sample household. The following formula is used:
Disposable Income of Urban Households=Total Household Income - Income Tax - Personal Contribution to Social Security - Subsidy for Keeping Diaries for A Sampled Household
2. Rural Household Survey
Rural Households refer to usual resident households in rural areas. Usual resident households in rural areas are households residing on a long term basis(for more than one year) in the areas under the administration of township governments (not including county towns), and in the areas under the administration of villages in county towns. Households residing in the current addresses for over one year with their household registration in other places are still considered as resident households of the locality. For households with their household registration in one place but all members of the households having moved away to make a living in another place for over one year, they will not be included in the rural households of the area where they are registered, irrespective of whether they still keep their contracted land.
Net Income of Rural Households refers to the total income of rural households from all sources minus all corresponding expenses. The formula for calculation is as follows:
Net income of rural households = total income - household operation expenses - taxes and fees-depreciation of fixed assets for production - gifts to rural relatives.
Net income is mainly used as input for reinvestment in production and as consumption expenditure of the year, and also used for savings and non-compulsory expenses of various forms. "Per capita net income of farmers" is the level of net income averaged by population, reflecting the average income level of rural population in a given area.
Consumer Price Index reflects the relative change in prices of consumer goods and services in a certain period of time, Formation of consumer price index aims to study the impact of consumer price changes on the actual living cost of urban and rural residents and to provide scientific basis for central government and relevant departments in drawing up consumer up consumer policy, price policy, wage policy and monetary policy and in accounting the nation economy. It is also a key index reflecting the fluctuation of inflation.
Retail Price Index refers to the prices at which industrial, commercial, catering and other retail enterprises sell daily consumer goods and products for office use to urban and rural residents and institutions and social organizations. It reflects the general change in prices of retail commodities in a certain period of time. Formation of retail price index aims to keep abreast of price fluctuation of retail commodities and provide the reference basis for the central government in working out economic policies.
Producer Price Indices for Farm Products reflect the trend and degree of changes in producers’ prices received by farmers when they sell farm products during a given period. These indices depict the change in the level and structure of producer prices for farm products of the country and meet the needs of agricultural statistics and national accounts statistics. The producer price index for a given product is calculated as the geometrical mean of individual indices for all surveyed units which sell such product, and the indices for a product category is obtained as the weighted mean of price indices for all products in the category. Method for calculating accumulative quarterly indices is the same as for calculating the individual quarterly indices.
Producer Price is a statistic index reflecting the fluctuation tendency and extent of the price of manufactured goods. It is a relative ratio of the average price fluctuation of manufactured goods in different times and places. This index includes the factory price of the manufactured goods at the first sale and the price of the raw materials, fuel and power purchased by the enterprises as intermediate input, which is an important basis for national economic accounting and economic administration.
Price Indices of Investment in Fixed Assets is a relative ratio reflecting the trend and degree of changes in prices of investment goods and charging projects in fixed assets of various engineering projects during a given period. This indicator is used to remove the factor of price change in the aggregates of investment at current prices.
Price Index of Residential Real Estate Sales is a relative ratio reflecting the general trend and variation degrees of the sales price of the residential real estate. This index of China is composed of the sales price of residential real estate and the sales price of second-hand residential real estate in 70 medium-large cities.