China's economy demonstrated robust momentum and a favorable beginning in the first two months of 2026, according to a press conference held by the State Council Information Office. The performance of the national economy during this period was characterized by several key aspects: rapid production growth, expansion of domestic demand, strong foreign trade performance, and overall stability in employment and prices.
In terms of production, industrial value-added from enterprises above a designated size increased by 6.3% year-on-year from January to February, accelerating by 1.1 percentage points compared to December of the previous year. This growth was primarily driven by improvements in domestic demand, stronger export contributions, and the effects of macroeconomic policies. The equipment manufacturing sector played a particularly significant role, with its value-added rising by 9.3% and contributing 47.4% to the overall industrial growth. Meanwhile, the service sector production index grew by 5.2% year-on-year, up 0.2 percentage points from December. The development of artificial intelligence notably boosted demand for information services, with the production index for information transmission, software, and information technology services increasing by 10.1%.
On the domestic demand front, consumption benefited from the extended Spring Festival holiday, the continued effectiveness of policies promoting the replacement of consumer goods, and active cultural, tourism, and leisure markets. Service consumption grew rapidly, leading to a noticeable rebound in market sales. Total retail sales of consumer goods rose by 2.8% year-on-year in January-February, an increase of 1.9 percentage points from December, mainly reflecting goods sales. Service retail sales grew by 5.6%, significantly faster than the growth rate of goods retail sales.
In terms of investment, as 2026 marks the beginning of the 15th Five-Year Plan period, efforts were made to seize opportunities and accelerate the launch of major projects, contributing to a rebound in investment. Fixed-asset investment increased by 1.8% year-on-year in January-February, reversing the 3.8% decline seen throughout the previous year. Within fixed-asset investment, infrastructure investment growth accelerated significantly, rising by 11.4% year-on-year during the first two months of the year.
Foreign trade also showed rapid growth, highlighting the resilience and vitality of China's external sector. The total value of goods imports and exports increased by 18.3% year-on-year in January-February, a substantial acceleration compared to the full-year performance of the previous year.
Regarding employment, the national surveyed urban unemployment rate rose slightly in January-February compared to December, influenced by seasonal factors related to the Spring Festival. However, the average unemployment rate for the two-month period stood at 5.3%, unchanged from the same period a year earlier, indicating that the overall employment situation remained stable.
Additionally, positive changes were observed in price trends. The consumer price index rose by 0.8% year-on-year in January-February, maintaining the same growth rate as in December but showing an improvement compared to the fourth quarter and the full year of the previous year. The core CPI, which excludes food and energy prices, increased by 1.3% year-on-year during the same period, also rising compared to December.