January-February data from China showed strong rebound from the pandemic hit period of last year. Both manufacturing and consumption started the year on a strong footing. Industrial production rose 35.1% yoy , above expectation of 30.0% yoy. Retail sales rose 33.8% yoy, above expectation of 32.0% yoy. Fixed asset investment rose 35.0% yoy, below expectation of 40.0% yoy.
The National Bureau of Statistics said that economy could show a sharp rebound in Q1 from a year earlier. But there are still imbalances in the recovery and support for consumption is needed. Also, time is needed to see recovery in manufacturing investment. Small firms are facing many difficulties.
