Industrial output in China grew 4.2% in August year over year, an improvement from the 3.8% growth in July, according to official data released on Friday. It indicates that despite the recent return to Covid lockdowns, China is still ramping up its production even in the face of greater global macroeconomic headwinds and persistent issues at home with Covid-19.

In a poll of economic experts by Reuters it was predicted there would only be a 3.8% increase in production. In retail, sales were up 5.4% beating predictions of a 3.5% rise, as well as the anemic 2.7% growth seen in July.

In the first eight months of the year fixed asset investment was up 5.8% from the same period one year prior. Analysts had expected a 5.5% increase, and January-to-July growth of 5.7%.

Overall the data was seen as indicative of a modest recovery in China despite a massive slump in the property sector, persistent issues with Covid-lockdowns, and softening demand due to macroeconomic factors.

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