MNI DATA IMPACT: Chinese Econ Data Hit Hard As Virus Spread

     BEIJING (MNI) - China's consumption and investment saw the biggest falls on

record in the first two months, with both registering double-digit declines, as

the coronavirus outbreak shuttered businesses and froze travel across the

country. Industrial activity also tumbled to the second lowest on record.

     March "will be significantly better than that in the first two months",

with an accelerated resumption of productions, according to Mao Shengyong,

spokesman at the National Bureau of Statistic. Mao noted that March will account

for about 40% of the total economic volume in Q1, but refused to give any

forecast of growth.

     Here are some of the data highlights:

     - Industrial production slipped 13.5% y/y in Jan-Feb, after a 5.7% gain in

Dec, missing the projected -3.0%. This was the first decline since at least

early 1990, when records began. 

     - Retail sales slumped 20.5% y/y in the first two months, reversing the 8%

gain in Dec, underperforming the -1.7% forecast. This was the first drop on

record.

     - Fixed-asset Investment tumbled 24.5% y/y in Jan-Feb, compared to a 5.4%

rise in 2019, and weaker than the -2.0% median forecast. This all-time low was

partly due to the fall in manufacturing investment, which fell 31.5% y/y from

the 3.1% growth in 2019.

     - Infrastructure investment also plunged 30.3%, reversing 2019's 3.8% gain.

Meanwhile, property investment growth declined to 16.3%, from last year's 9.9%

growth.

     - Registered urban unemployment soared to 6.2% in Feb, rising from the

5-5.3% level in 2019. The rate in 31 major cities also rose to 5.7% in Feb, the

NBS said without disclosing the Jan data.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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