China’s Economy Shows Strong End to First Quarter
As the first quarter comes to a close, China’s economy is showing signs of strength, according to a recent business survey conducted by the China Beige Book. The survey, which included responses from 1,436 businesses between March 1 and 23, indicated that the economy saw improvements in industrial activity and retail spending in March.
Shehzad H. Qazi, the chief operating officer at the China Beige Book, noted that the economy clearly improved in March, with revenue growth accelerating and pricing gains boosting margins. This positive outlook is supported by China’s official data on retail sales, industrial production, and fixed asset investment for January and February, which exceeded expectations across the board.
Despite the ongoing challenges posed by the COVID-19 pandemic and other economic headwinds, China’s economy is poised for a strong end to the first quarter. The National Bureau of Statistics is set to release first quarter data on April 16, providing a more comprehensive overview of the country’s economic performance.
One key area of improvement highlighted in the China Beige Book survey is employment, which recorded its longest stretch of improvement since late 2020. Job growth was observed in every sector except for services, indicating a broad-based recovery in the labor market.
In terms of sector-specific performance, retail spending increased across most sub-sectors, while real estate and manufacturing also saw positive developments. Despite a decline in residential real estate sales, commercial sales and construction activity showed significant improvement. Manufacturing experienced growth in production and domestic orders, although export orders saw a decline.
Overall, the findings of the China Beige Book survey paint a picture of a resilient and gradually recovering Chinese economy. Analysts will be closely watching for further developments in the coming months to assess the country’s progress towards achieving its growth target of around 5% for the year.
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