Beijing, 18 March 2024 (TDI): Industrial output growth in China surged by 7.0% year-on-year in the January–February period, marking a solid start for 2024.
According to the reports, it was the fastest growth in nearly a full year. This growth represents an acceleration from the 6.8% pace witnessed in December, surpassing expectations and indicating a robust beginning for 2024.
NBS Report
Recent data from the National Bureau of Statistics (NBS) shows that China’s manufacturing output and retail sales during the January–February period exceeded forecasts, pointing to a strong start to the year.
NBS spokesperson Liu Aihua highlighted a significant uptick in both the high-tech manufacturing and consumer goods manufacturing sectors.
Moreover, he noted a 7.5 percent year-on-year increase in industrial output during the January–February period.
However, in the same year, consumer goods manufacturing sector industrial output rose 4.7 percent year-on-year, accelerating by 4.4 percentage points from that in December 2023, Liu stated.
In addition, albeit at a slower rate than in December, retail sales increased by 5.5%.
It nevertheless outpaced expected returns. Travel and tourist income increased as a result of the Lunar New Year break.
To fulfill the growing demand for transportation fuels, it helped to drive up oil refineries by 3%.
The real estate industry is nonetheless plagued with worries despite these encouraging developments, it still faces difficulties.
Sales of real estate fell sharply, which was indicative of persistent problems in this vital area of the economy.
Despite a slight increase in the national unemployment rate attributed to seasonal Lunar New Year causes, structural difficulties persist in the labor market.
Premier Li Qiang promises to address concerns in the real estate market and local government debt in addition to changing the development paradigm. This emphasizes how conscious the administration is of these difficulties.
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There are expectations of global monetary easing that could benefit China’s manufacturing sector. Analysts caution about Beijing’s fiscal capacity constraints.
This may be reversed by making a big effort to give market-driven resource allocation and household consumption a top priority.
The coming months will be crucial as policymakers navigate these challenges to steer the economy toward sustainable and inclusive growth.
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