Fixed asset investment increased by 4.2%, exceeding expectations of 3.2%.
The urban unemployment rate in February was 5.3%.
In the first two months of this year, online retail sales of physical goods increased by 14.4% year-on-year.
Investment in real estate fell 9% in the first two months of this year compared to the same period last year. During this period, investment in infrastructure increased by 6.3% and investment in manufacturing increased by 9.4%.
In China, economic data for January and February are usually combined to smooth out fluctuations from the Lunar New Year. Lunar New Year can fall in either month depending on the calendar year. It is the country’s biggest public holiday, with factories and businesses closed for at least a week.
This year, the number of trips and income of domestic tourists during the holidays increased compared to last year and pre-pandemic 2019 figures. However, Ting Lu, Nomura’s chief China economist, said that “average tourism spending per trip remains below 9.5%.” 2019 pre-pandemic levels. ”
Retail sales did not recover as much from the pandemic as many expected, as consumers grew anxious about their future incomes.
Goldman Sachs analysts said in a note Friday that new loan volumes in February were lower than expected and fell month-over-month “even after adjusting for seasonality.”
Analysts said, “The continued slump in real estate transactions and weak consumer sentiment may continue to put pressure on household borrowings.” “Further monetary easing is necessary.”
People’s Bank of China Governor Pan Gongsheng said earlier this month there was still room to lower the reserve requirement ratio, or the amount of cash banks need to keep on hand.
Goldman expects the ratio to fall by 25 basis points in the second quarter of this year, as it did in the fourth quarter.
Real estate, which accounts for a significant portion of household wealth, has languished in recent years following a Chinese government crackdown on developers’ heavy reliance on debt for growth.
Average real estate prices in China’s 70 major cities fell by 4.5% in February compared to January on a seasonally adjusted annual basis, according to a Goldman Sachs analysis using a weighted average of official figures.
That’s more than the 3.5% month-over-month decline in real estate prices in January, according to Goldman Sachs.
“According to our high-frequency tracker, new home transaction volume across 30 cities decreased by 53.2%.” [year-on-year] It is scheduled for early March after adjustment to lunar calendar standards,” the analysts said in a report.
Chinese authorities did not reveal any significant new support for the giant real estate sector at the annual parliamentary session that ended last week.
Instead, the Chinese government emphasized its focus on developing manufacturing and technological capabilities.
Data from earlier this month showed that China’s exports rose 7.1% in US dollar terms in January and February, beating expectations for a 1.9% increase.
Imports rose 3.5% during the period, exceeding Reuters’ forecast for a 1.5% increase.
