China began 2026 on a strong footing, with key activity indicators for the combined January–February period beating expectations, according to the statistics agency. Industrial output and retail sales both grew faster than forecast, underscoring solid momentum in manufacturing and consumer demand. Fixed-asset investment also surprised to the upside, rising 1.8% versus market expectations for a 0.4% decline. The surveyed unemployment rate averaged 5.3%, unchanged from a year earlier, indicating broadly stable labor market conditions.
Despite the encouraging data, the agency cautioned that significant challenges persist. It pointed to mounting external pressures, heightened geopolitical risks, and enduring domestic structural problems. Some firms continue to face operational difficulties amid the country’s economic transition. Policymakers, the agency emphasized, must carefully balance supporting growth momentum with bolstering economic resilience in an increasingly uncertain global environment.
