Retail sales rose 6.7% in the first two months of 2022 compared to last year, according to data released by the National Bureau of Statistics on Tuesday. That was well above the estimated 3 percent growth, according to a Reuters poll of economists.
Industrial production jumped 7.5% over the same period, also beating the 3.9% forecast.
“The national economy continued to recover steadily, demand for products grew rapidly, and employment and prices generally remained stable,” the bureau said in a statement.
“Macro data for January and February is quite strong, indicating that supportive government policies have begun to help the economy,” Zhiwei Zhang, chief economist at Pinpoint Asset Management, wrote on Tuesday. “But the macroeconomic outlook for the next few months remains challenging,” he said, pointing to recent Covid outbreaks as the main risk.
On Sunday, China reported 2,125 local cases of Covid-19 in 58 cities, the fourth straight day of more than 1,000 local infections reported daily in the country, according to the National Health Commission (NHC).
In the Shenzhen technology hub, all businesses, except for those deemed essential or supplying to Hong Kong, have suspended operations or implemented a work-from-home policy.
In addition to Shenzhen, local authorities in the northeastern province of Jilin have also banned residents from leaving or traveling since Monday. The province of 24 million is home to the industrial heartland of Changchun, where Toyota and Volkswagen jointly operate their car factories. with the state-owned automaker FAW Group.
Shanghai, the country’s largest business center, has also imposed strict measures following a spike in Covid cases, closing schools and cinemas and restricting travel to the city.
The restrictions came just months after China shut down the northwest city of Xi’an, impacting core business operations, including those of Samsung and Micron, the world’s two largest chipmakers.
The history will be updated.