China's Industrial Production In February Misses Expectations
The industrial production data from China is finally released and it is pointing toward a staggered recovery in the country. Industrial production in February increased a little bit but it was still below market expectations.
Analysts believe that manufacturing activity in China has slowed down even though the anti-COVID measures are already lifted. This is an indication that the economic recovery in the country is not what the experts were hoping for.
Retail sales, which is also an important economic indicator, saw an uptick during February. This suggests that consumer spending in China is on the path of recovery, and the COVID slowdown is almost over.
In short, retail sales are recovering at a good pace while industrial production is still lagging behind. The slowdown in industrial production points towards weak demand in local and international markets.
Industrial production Is Up By 2.4%
Industrial production in February increased by 2.5% when compared with the same month last year. However, the market was expecting an increase of 2.6% - We can say that the industrial production data has only missed the estimate by a small margin (0.1%).
During January 2023, the industrial production in China was around 1.3%. So even on that front, industrial production has seen a healthy increase!
Even though the data has missed the forecast, it is still strong enough to suggest that industrial production is now in expansion territory once again. And if the global sentiment improves, this could rise even further!
When it comes to China, the demand comes from the local and overseas markets. Although the conditions in the local Chinese markets have improved, overseas demand is still weak.
And let's not forget that USA, Germany, Spain, and several other countries are also struggling with high inflation, economic slowdown, and high-interest rates.
The economic landscape is just not as favorable as required for China to push up its industrial production numbers.