China's Factory Output and Retail Sales Show Steady Growth in Early 2026

China's economy showed steady growth in early 2026, with factory output rising around 6.3% year-on-year in January-February, surpassing forecasts and marking the fastest industrial production growth since September 2025. Retail sales increased by approximately 2.8-3%, aided by an extended Lunar New Year holiday that boosted travel and leisure spending. Despite these gains, consumer caution persists amid ongoing economic uncertainties and geopolitical tensions affecting global trade and energy markets.