BEIJING- China’s economy perked up in the first two months of 2022, with key indicators all exceeding analysts’ expectations, although a surge in Omicron cases, property weakness and heightened global uncertainties are weighing on the outlook.
Industrial output rose 7.5 percent in January-February from a year earlier, the fastest pace since June 2021 and up from a 4.3 percent increase seen in December, data from National Statistics Bureau showed on Tuesday. That compared with a 3.9 percent rise expected by analysts in a Reuters poll.
Retail sales, a gauge of consumption that has been lagging since COVID-19 hit, expanded 6.7 percent year-on-year amid rising demand during the Lunar New Year holidays and Winter Olympic Games. It also marked the quickest clip since June last year and beat expectations of a 3.0 percent increase in the poll.
It eked out a 1.7 percent gain in December.
The surprisingly strong performance of the world’s second largest economy in the New Year may have enabled the People’s Bank of China (PBOC) to hold policy rates steady on Tuesday, Iris Pang, Greater China chief economist at ING, said in a note.
The PBOC kept the rate on its one-year medium-term lending facility loans unchanged earlier in the day, dashing expectations for a cut, although investors believe policymakers may resume monetary easing soon to prop up the cooling economy.
The statistics released combined January-February economic data to help smooth out distortions caused by the Lunar New Year holiday, which fell in early February this year.
One highlight from the data was the strong growth in retail sales, which received a boost from product sales related to the Winter Olympic Games, such as skiing equipment and ice sports, Fu Linghui, spokesman for the statistics bureau, told a press conference.
The mascot Bing DwenDwen has been an unexpected star of the Beijing Olympics, with thousands of fans lining up in sub-freezing temperatures to buy merchandise – from magnets and key chains to bags and stuffed toys – and factories scrambling to make more.
