China’s economy showed mixed signals in the first two months of 2024, with strong retail sales and industrial output contrasting with rising unemployment and a struggling housing market.
Retail sales grew 4% year-on-year in January-February, up from December’s 3.7%, while industrial production increased by 5.9%, exceeding market forecasts. The high-tech and equipment manufacturing sectors also expanded, with gains of 9.1% and 10.6%, respectively. Fixed asset investment reached 5.3 trillion yuan ($727 billion), marking a 4.1% annual rise, driven by infrastructure and industrial spending.
However, urban unemployment hit a two-year high of 5.4% in February. The housing sector remained weak, with new home prices dropping 4.8% year-on-year, slightly less than January’s 5% decline, signaling a possible slowdown in the downturn.
