Financial News: China Industrial Output, Retail Sales Rise More Than

China Industrial Output, Retail Sales Rise More Than Forecast

(RTTNews) - China's industrial production and retail sales expanded more than expected in the January to February period driven by fiscal stimulus but the property market remained a drag on the economy.

Industrial production registered an annual growth of 5.9 percent but slower than the 6.2 percent rise in December, data from the National Bureau of Statistics showed Monday. Nonetheless, the pace of growth exceeded forecast of 5.3 percent.

Meanwhile, growth in retail sales improved to 4.0 percent in January to February from 3.7 percent in December. The rate was also better than the expected expansion of 3.8 percent.

Fixed investment growth rose to 4.1 percent in January and February from 3.2 percent in 2024.

However, property investment contracted 9.8 percent year-on-year. But this was smaller than the 10.6 percent decline in 2024.

Capital Economics economist Zichun Huang said the recovery is expected to continue over the coming months, supported by the policy measures outlined at the National People's Congress.

But this recovery may prove short-lived due to the underlying structural challenges, the economist noted. The correction in property construction will continue for years, pulling down economic growth over the medium-term, Huang added.

Earlier this month, China maintained its growth target at "around 5 percent" for 2025 but the government turned more cautious about nominal growth and inflation outlook amid heightened uncertainty surrounding the U.S trade tariff threats.

ING economist Lynn Song said China rarely fails to achieve its growth target, and the policy support is expected to continue to roll out to help offset the tariff impact on growth this year.

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