China’s Manufacturing Performance Advances. China’s economic growth is reported to be mixed. Manufacturing and investment performance at the start of the year has been strong. However, consumption still recorded slower progress.
China’s National Bureau of Statistics (NBS) on Monday (18/3/2024) said that manufacturing performance increased 7% in January-February 2024 from the previous year’s period. From the investment side, there was a higher jump than expected to 4.2%. Retail sales also strengthened 5.5%, in line with projections.
However, consumer demand is still considered to be the weak point of the Chinese economy. Strong industrial and investment data added to evidence of more momentum for the world’s second-largest economy. This economic revival is also said to be the effect of stimulus policies since the end of last year.
Now, China needs to maintain momentum to achieve the 5% growth target in 2024, the same as the previous year. However, the target this time will be more difficult because the comparison base is less favorable.
The NBS also said that the economy will continue to recover and turn around in January-February 2024 with the implementation of various policies.
Investment in property development declined by 9%, remaining a huge burden on the economy. Consumer and business confidence is also still hampered by uncertainty in income estimates.
China’s Manufacturing Performance Advances. Meanwhile, excess manufacturing capacity continues to increase, fueling tensions with trading partners and creating uncertainty in the export outlook.
Although consumer prices rose in February 2024 for the first time in five months, this increase was largely driven by spending during the Chinese New Year holiday and is likely to be temporary.
