China’s economy is on track for ‘strong’ March performance, survey says

China’s economy is performing exceptionally well as it approaches the end of the first quarter.

A business survey by the China Beige Book reveals robust growth across various sectors.

Retail spending has surged, with all sub-sectors experiencing gains except for luxury items.

Industrial production is thriving, fueled by expanding domestic orders and strong manufacturing output.

Notably, hiring has witnessed its longest period of improvement since late 2020, with job growth picking up in all sectors except services.

China’s official data also paints a positive picture, with retail sales, industrial production, and fixed asset investment exceeding expectations for January and February.

This data typically includes combined figures for the first two months of the year, accounting for the Lunar New Year holiday.

Despite the upbeat sentiment, businesses have reduced their borrowing due to higher interest rates.

However, the survey indicates a potential pause in lending activity, suggesting that some lenders may be exercising caution.

The China Beige Book’s findings indicate that the economy is well-positioned for a strong finish in the first quarter.

The upcoming release of first quarter data from the National Bureau of Statistics on April 16 is eagerly awaited to provide further insights into China’s economic performance.

In the face of these promising signs, it is worth noting that China has set a growth target of around 5% for the year.

Some analysts consider this a challenging goal given the current level of government stimulus.

Nevertheless, the current economic momentum provides a solid foundation for optimism.