China Jan – Feb 2025 Retail sales 4% y/y (exp 4%) Industrial production 5.9% (exp 5.3%)

China retail sales, industrial output, investment data for January – February 2025. January and February combined to help ease the volatility the data would show otherwise over the moveable Lunar new Year holiday.

Retail Sales 4.0%

• expected 4.0%, prior 3.7%

Industrial Production 5.9%

• expected 5.3%, prior 6.2%

Fixed Asset Investment 4.1%

• expected 3.2%, prior 3.2%

Unemployment Rate 5.4%

• expected 5.1%, prior 5.1%

These are better figures, except for the jobless rise. I suspect that a rising unemployment rate will prompt more stimulus from China more than other data point. Indeed, we are getting a steady flow of stimulus announcements. This the latest:

• Weekend – China released a 30-point plan aimed at boosting domestic consumption

More:

• Weekend – China city Shenzen announced eased housing finance rules
• ICYMI: $US3 to 5 billion in US beef, pork and chicken trade to China is at risk
• Weekend – China released a 30-point plan aimed at boosting domestic consumption

More from the data:

• Property investment -9.8% y/y in January – February (fell 10.6% in 2024)
• Property sales by floor area -5.1% y/y (fell 12.9% in 2024)
• New construction starts measured by floor area -29.6% y/y (-23.0% in 2024)
• Funds raised by China’s property developers -3.6% y/y (fell 17.0% in 2024)

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