China's factory output and consumption beat forecasts, while property investment contraction slows

Economic Performance - China's economy began the year strongly, with consumption and production exceeding expectations due to holiday spending and robust foreign demand [1] - Retail sales for the first two months increased by 2.8% year-over-year, surpassing the forecast of 2.5% growth, although this reflects a slowdown from the 4% growth in the same period in 2025 [2] - Industrial output rose by 6.3%, exceeding expectations of a 5% increase, driven by resilient external demand, particularly from European and Southeast Asian markets [2] Investment Trends - Investment in fixed assets, including property, grew by 1.8% year-over-year, contrasting with the forecasted decline of 2.1% [3] - Real estate development investment continued to decline, falling by 11.1% in January and February, though this is an improvement from the 17.2% drop in 2025 [3] - Fixed asset investment experienced a significant decline of 3.8% year-over-year in 2025, attributed to a deepening property downturn and stricter borrowing constraints on local governments [4] Economic Goals - Chinese leadership set a GDP growth target for 2026 in the range of 4.5% to 5%, marking the least ambitious goal on record since the early 1990s [4]