(Yicai) March 18 -- China’s economic indicators grew at a faster pace than last year in the first two months of this year, laying solid ground for achieving this year’s economic growth target of 5 percent, according to the latest official data.

Industrial Production

The value added of industrial enterprises with annual revenue of at least CNY20 million (USD2.8 million) widened 5.9 percent in January and February from a year earlier, compared with a 5.8 percent increase for the whole last year, according to data released yesterday by the National Bureau of Statistics.

The industrial output grew in the two first two months of the year despite a high base in the same period last year, reflecting the strong resilience of China’s industry sector, NBS spokesperson Fu Linghui said at a press conference yesterday. Cutting-edge technologies, such as artificial intelligence, are increasingly driving industrial development, he noted.

The value added of equipment manufacturing and high-tech manufacturing enterprises above the designated size surged 10.6 percent and 9.1 percent, respectively, in the period, versus 7.7 percent and 8.9 percent in 2024, NBS data also showed.

In terms of products, the production of new energy vehicles, service robots, and industrial robots climbed 48 percent, 36 percent, and 27 percent, respectively, according to NBS data. The surging demand for AI computing power drove China’s server and service robot outputs by 73 percent and 36 percent, it also showed.

Consumption

China’s retail sales of consumer goods rose 4 percent to CNY8.37 trillion (USD1.16 trillion) in the two months ended Feb. 28 from a year earlier, 0.5 percentage point faster than in the whole last year, according to the NBS.

Among that, online retail sales grew 7.3 percent to CNY2.28 trillion, with online retail sales of physical goods up 5 percent to CNY1.86 trillion, accounting for over 22 percent of the total retail sales.

The boom in tourism, culture, and sports consumption during the Chinese New Year holiday, as well as the expansion of the trade-in subsidy policy for consumer goods, were the main contributors to the continued recovery of consumption, Fu said.

Thanks to the trade-in subsidy policy, retail sales of communication equipment, cultural and office supplies, furniture, household appliances and audio-visual equipment by enterprises above the designated size soared 26 percent, 22 percent, 12 percent, and 11 percent, respectively, in the period, the NBS said.

The consumer confidence index for February was 0.9 percentage point higher than that in January, rising for the third consecutive month, Fu added.

Investment

China’s investment in fixed assets, excluding rural households, climbed 4.1 percent to CNY5.26 trillion in the first two months of the year from the same period last year, compared with a 3.2 percent growth in 2024, according to the NBS. Infrastructure and manufacturing investment rose 5.6 percent and 9 percent, respectively.

Meanwhile, real estate investment plunged 9.8 percent to CNY1.1 trillion in the period, compared with a 10.6 percent decline last year, showing small signs of recovery. Sales of newly-built houses dropped 2.6 percent to CNY1.03 trillion in January and February from a year earlier, versus a 17.1 percent fall in 2024.

As the supporting policies introduced last year have been gradually taking effect, the Chinese real estate market has continued to stabilize this year, Fu said, adding that some areas are still in the process of adjustment.

In the next step, China will continue to lift restrictions in the property market, accelerate the implementation of old house renovation projects, and fully release housing demand, Fu noted.

Private investment remained the same as last year in the first two months, increasing 6 percent from a year earlier, NBS data also showed.

The investment in high-tech industries grew 9.7 percent, of which that in information services, e-commerce services, computer and office device manufacturing, and aerospace vehicle and equipment manufacturing rose 66 percent, 32 percent, 32 percent, and 27 percent, respectively.

Editors: Dou Shicong, Futura Costaglione