China’s Economy May Struggle to Maintain Growth Momentum
China’s economy may struggle to maintain its growth momentum despite the rapid recovery seen at the start of the year, as some sectors are rebounding more slowly and the expected consumer revenge-spending boom hasn’t materialized.
Exports, fixed-asset investment, and retail sales in the first two months of the year all beat expectations, data from the National Bureau of Statistics (NBS) and the General Administration of Customs show. Yet despite the encouraging signs, the numbers also indicate the economic recovery has been patchy. A strong rebound in services sectors has contrasted with a more subdued recovery in manufacturing. Consumer spending on restaurants, travel and other in-person businesses have recorded big jumps, but purchases of big-ticket items such as cars have lagged.
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