China's industrial output up 3.9% YoY in Mar 2023, lower than expected

19 Apr '23

2 min read

Pic: Shutterstock/Yuangeng Zhang

Insights

China's industrial output rose by 3.9 per cent YoY in March 2023, falling slightly short of expectations.
The value-added industrial output rose by 3 per cent in Q1 2023, and business expectations have improved.
Retail sales surpassed expectations, growing by 10.6 per cent, while fixed asset investment grew by 5.1 per cent from January to March.

China’s industrial output rose by 3.9 per cent year-on-year (YoY) in March 2023, as per the National Bureau of Statistics (NBS). While the data indicates an improvement in the country’s post-COVID economic recovery, it fell slightly short of expectations. The value-added industrial output rose by 3 per cent in the first quarter (Q1) of 2023, marking a 0.3 percentage point increase from the previous quarter.

Overall improvements have been observed in business expectations, along with a steady recovery of China's industrial production during Q1 2023.

The gauge for measuring the activity of large enterprises with an annual main business turnover of at least 20 million yuan (equivalent to around $2.91 million) is industrial output measurement.

Retail sales in China surpassed expectations by a significant margin, registering a growth of 10.6 per cent, which is faster than the 3.5 per cent increase observed during January-February. In contrast to the anticipated 5.7 per cent rise, the YoY growth of fixed asset investment from January to March decelerated to 5.1 per cent. It had grown by 5.5 per cent in the January-February period.

Chinese policymakers have pledged to provide support for the world’s second-largest economy this year after lifting COVID-19 curbs in December. The country has made progress in its economic recovery, with industrial output and retail sales improving, but policymakers will need to closely monitor fixed asset investment to maintain economic stability, local media reports said.

Fibre2Fashion News Desk (NB)

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