China's Jan-Feb Industrial Output Surges 7%, Exceeding Expectations

Data released on Monday by the National Bureau of Statistics (NBS) revealed that China's industrial output surged by 7 per cent year-on-year during the January-February timeframe. This growth, exceeding the 6.8 per cent pace observed in December, surpassed expectations and indicated a robust commencement for 2024, offering some relief to policymakers.

The reading outstripped analysts' forecasts, with a Reuters poll projecting a mere 5 per cent increase. Meanwhile, retail sales, serving as a measure of consumption, climbed by 5.5 per cent in the initial two months of the year, although this represented a deceleration from the 7.4 per cent uptick recorded in December. Nevertheless, this figure also surpassed analysts' expectations of a 5.2 per cent growth rate.

In terms of fixed asset investment, there was an expansion of 4.2 per cent during the same two-month period compared to the previous year. This figure outperformed predictions for a 3.2 per cent rise. Notably, the growth rate for fixed asset investment in 2023 stood at 3 per cent.

Overall, these figures portray a promising start to the year for China's economy, surpassing expectations and offering positive signs for policymakers.