China released upbeat macroeconomic data last Tuesday indicating that the economy remained on solid footing at the start of the year, and analysts said the trend will continue through the year.

Industrial output rose by 6.3pc year-on-year in the first two months, according to the National Bureau of Statistics.

Fixed asset investment, a major driver of growth, increased by 8.9pc year-on-year in the first two months, down from 10.2pc in the same period last year. But it was the fastest pace since July.

China released upbeat macroeconomic data indicating that the economy remained on solid footing at the start of the year; analysts said the trend will continue

Real estate investment increased by 8.9pc in the period, up from 3.0pc in the first two months of last year. It beat market expectations against the backdrop of tightened regulations since October to combat speculation.

Retail sales, however, increased by 9.5pc in the period, down from 10.2pc in the same period last year.

Most data is ‘quite positive’ and ‘apparently improving,’ NBS spokesman Sheng Laiyun told a news conference. “On the whole, in the first two months, the national economy continued the stable and improving growth momentum since the second half of last year,” he said.

Sheng also said data in the first two months show the country’s economic restructuring has made progress. For example, industrial output in the high-tech and equipment industries increased by 12.6pc and 11.9pc, respectively — both higher than the growth of overall industrial output. Fixed asset investment in high-tech industries, meanwhile, rose by 18.4pc.

“China’s domestic and external demand has picked up, with export, manufacturing investment, real estate investment and infrastructure all expanding at a faster-than-expected pace,” said Ren Zeping, chief economist of Founder Securities. “The Chinese economy is starting to step out of slowdown and enter a cycle of recovery.”

Hu Yuexiao, chief macroeconomic analyst at Shanghai Securities, said: “Investment remains China’s main growth engine, and its pickup means the Chinese economy has started to stabilise. It will maintain the trend of stabilisation and continue to improve this year.”

— China Daily/ANN

Published in Dawn, Business & Finance weekly, March 20th, 2017