China posted a solid start to 2026, with key activity indicators exceeding expectations in the combined January–February period, according to the statistics agency. Industrial output and retail sales both grew faster than forecast, highlighting momentum in manufacturing and consumer spending. Fixed-asset investment also surprised on the upside, rising 1.8% against market calls for a 0.4% decline. Meantime, the surveyed jobless rate averaged 5.3%, unchanged from a year earlier, suggesting broadly stable labor market conditions. Despite the upbeat data, the agency cautioned that challenges remain. It warned of intensifying external pressures, elevated geopolitical risks, and persistent domestic structural issues. Some enterprises continue to face operational strains amid the country’s economic transition. Policymakers, the agency stressed, must balance sustaining growth momentum with strengthening resilience in an uncertain global environment.

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