China Economic Analysis Report, No 1 2014
Value-added industrial output for the January-February period was up 8.6 percent year-on-year, but was 1.1 percentage points lower than for December 2013, while fixed assets investment for the period rose 17.9 percent year-on-year, but saw a 1.7-percentage-point drop from the previous year. At the same time, real estate, infrastructure, and manufacturing all suffered slower growth, while manufacturing suffered the biggest decrease, with a 3.4-percentage-point drop.
Consumption for the period grew 10.8 percent year-on-year, but down 1.4 percentage points from December 2013 and up 0.4 percentage point from the same last year period, while exports fell 1.6 percent year-on-year, down 5.9 percentage points from last December. At the same time, credit and social financing grew at a slower pace as the yuan continued to depreciate.
In short, the economy faces increasing downward pressures and China needs to maintain a neutral monetary policy and a fiscal policy centered on tax reduction and optimal spending, and continue to push reforms in areas that can have a growth effect.Monthly report on macro-economic situation (January 2014)