China steadily increases its industrial output. According to official data, industrial production in China expanded by 6.3 percent year-on-year in the period from January to February. Growth rate acceleration surpassed even the most optimistic forecasts of analysts who had expected a 6.2 percent rise.

Experts in the National Bureau of Statistics of China combined data for January and February to exclude the seasonal influences caused by the Chinese New Year holidays. In addition, an upbeat result was shown by investments in fixed assets, which increased by 8.9 percent in the first two months of 2017. The corresponding indicator grew by 8.1 percent in 2016. Moreover, China’s producer prices inflation accelerated more-than-expected in February to the highest level in almost nine years. A strong demand for resources in China helped to stimulate inflation in commodity markets and in the global manufacturing sector. The producer price index increased by 7.8 percent in February from a year ago, exceeding market expectations and a 6.9 percent growth in January.

According to Tommy Se, an economist at OCBC Bank in Singapore, these data indicate a good start of the year. Fixed assets investments received the main impetus from infrastructure projects. It is a sign that active fiscal policy is working well.