China’s new factory data shows a bright start to the year

Official factory data published on Sunday also entered positive territory, offering relief to policymakers even as a crisis in the property sector remains a drag on the economy and confidence.

Premier Li Qiang announced an ambitious 2024 economic growth target of around 5% at the annual meeting of China’s parliament in March.

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But analysts say policymakers will need to roll out more stimulus to hit that target as they will not be able to count on the weak statistical base of 2022 which flattered 2023 growth data.

They will not be able to count on the weak statistical base of 2022 which flattered 2023 growth data.

A drop in raw-material prices reduced production costs for manufacturers, providing leeway for them to lower prices amid fierce market competition.

A drop in raw material prices reduced production costs for manufacturers, providing leeway for them to lower prices amid fierce market competition.

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Downward economic pressure persist, employment remains subdued, prices remain low and insufficient effective demand has not been fundamentally resolved.