China's Economy Surpasses Forecasts in Early 2026

China's economy showed stronger-than-expected performance in the first two months of 2026, with industrial production, retail sales and fixed-asset investment all surpassing forecasts, according to data released Monday by the National Bureau of Statistics. The figures, which combine January and February to account for Lunar New Year distortions, signal building momentum in the world's second-largest economy despite ongoing challenges in the property sector and emerging global risks.

Industrial output grew 6.3 percent year on year, accelerating from 5.2 percent in December 2025 and exceeding economist expectations of around 5 percent. This marked the fastest expansion since September 2025 and highlighted resilience in manufacturing, driven by strong exports in sectors like green technology and high-tech goods. Retail sales, a measure of consumer demand, rose 2.8 percent from a year earlier, up sharply from 0.9 percent in December and topping median forecasts of 2.5 percent. The improvement suggested some stabilization in household spending, bolstered by robust domestic tourism during the holiday period, though demand for big-ticket items remained subdued.