China’s economic growth was buoyed by strength in factory output and investment at the start of the year, while a revival in consumption continues to show more muted progress, reports Caixin. Industrial output rose 7% in January-February from the same period a year earlier, the National Bureau of Statistics said Monday, much faster than economist estimates. Growth in fixed-asset investment accelerated to 4.2%, also stronger than forecasts. Retail sales increased 5.5%, roughly in line with projections.
“The economy is stabilizing with the help of supply-side stimulus and some improvement in export demand,” said Michelle Lam, Greater China economist at Societe Generale SA, citing the positive investment and industrial data. She said “consumer demand remained the weak spot.”
The strong industrial and investment figures add to evidence of more traction for the world’s second-largest economy after policymakers ramped up stimulus late last year. Earlier, export growth exceeded expectations. Building and sustaining momentum is key to achieving Beijing’s growth target for this year of around 5%—that’s the same as 2023’s, but harder to attain given a less favorable comparison base.