China retail sales beat forecasts in early-year rebound

Consumer spending in China showed signs of improvement in the first two months of the year, with retail sales growing faster than expected, according to official data released Monday.

Retail sales increased by 2.8 percent in January and February compared with the same period last year, the National Bureau of Statistics said. The figure exceeded economists’ expectations of 2.5 percent in a Bloomberg survey.

Chinese authorities typically combine data for the first two months of the year to reduce distortions caused by the timing of the Lunar New Year holiday, which often boosts economic activity.

The latest growth rate marks the strongest retail performance since October, though it remains below the increases recorded in previous years, including a four percent rise during the same period in 2025.

The data also showed that industrial production expanded by 6.3 percent in January and February, surpassing the 5.3 percent forecast by economists.

Meanwhile, fixed asset investment returned to positive growth, rising 1.8 percent during the period, indicating a modest improvement in economic activity as Beijing works to stimulate demand in the world’s second-largest economy.