China: Jan-Feb Industrial output +7.0% y/y (expected +5.0%), Retail sales +5.5% (5.2% exp)

Four key indicators from China. The January-February data has been combined to account for the moveable Lunar New Year holidays each year. Data released by China’s National Bureau of Statistics (NBS).

Industrial Production y/y +7.0%, a beat

• expected +5.0%, prior +6.8%

Retail sales y/y +5.5%, a beat

• expected +5.2%, prior +7.4%

Fixed asset investment y/y +4.2%, a beat

• expected 3.2%, prior +3.0%

Unemployment rate 5.3%, rising from December.

• prior 5.1%

Indicative of the debt-damaged property sector, property investment in the January – February period is down 9.0% y/y

The NBS says both macroeconomic policy and the economy carried on recovering.

More on the troubled property sector:

• Property sales by floor area down 20.5% y/y in
  January-February (prior -23.0% in December)
• New construction starts measured by floor area -29.7% y/y (prior -11.6%)
• Funds raised by China’s property developers were -24.1% y/y (prior -17.8%)

China has been increasing supportive measures to boost the sector. For example, authorities launched a “whitelist” mechanism in January, channelling funds from state banks into local property projects identified by city governments as justifiable for financing support.

This article was written by Eamonn Sheridan at www.forexlive.com.