China maintains steady growth in first four months of 2026, say officials

The Chinese economy maintained a steady growth trend with high-quality development advancing steadily in the first four months of 2026, according to officials on Monday.

Value-added industrial output rose 5.6% year on year, said Fu Linghui, spokesperson for the country's National Bureau of Statistics. Within this segment, notably, equipment manufacturing increased 8.7%, and high-tech manufacturing surged 12.6%, outpacing the overall industrial growth by 3.1 and 7 percentage points, respectively.

For the services sector, the service production index grew by 4.9% year on year, remaining generally stable, said the NBS. By sector, information transmission, software and IT services rose 10.9%, leasing and business services increased 9.3% and financial services grew 6.7%.

Meanwhile, retail sales of consumer goods increased 1.9% year on year. Among them, the online retail sales of goods rose by 5.7%, accounting for 25% of the total retail sales of consumer goods. The online retail sales of services increased by 8.3%.

NBS: Innovation driving progress

Innovation continues to drive progress, with digitalization and green transformation advancing, creating new economic momentum, said Fu. The value-added in high-tech manufacturing rose 12.6% year on year. Notably, aircraft manufacturing surged by 25.7% while biopharmaceutical production rose 12%.

Fu noted that international conditions remain volatile and global supply chains continue to face pressure. 

However, exports are seeing a bright spot. Total goods imports and exports increased 14.9% year on year, with trade to major partners such as ASEAN, the EU, and Belt and Road Initiative countries maintaining double-digit growth.

Fixed-asset investment fell 1.6% year on year, while project investment excluding real estate rose 1.3%. Investment in integrated circuit manufacturing grew 11.6%, and equipment spending for internet services and telecom, broadcasting and satellite services surged 81.8% and 22.3%, reflecting strong momentum in tech-driven sectors, said the NBS.

In the jobs market, overall, employment remained stable. In April, the nationwide urban unemployment rate was 5.2%, down 0.2 percentage point from March. Among those aged 30–59, the rate was 4.2%, also slightly lower than the previous month.

Luxury brands in China

Riding the momentum of a strong domestic demand, global luxury brands continued to show confidence in the Chinese market. According to filings, in 2026, Burberry Greater China grew 4% despite global headwinds; it had earlier achieved double-digit growth in the fourth quarter. LVMH stabilized its performance in China, and Hermès continued its steady growth.

Joshua Schulman, CEO of Burberry, noted that 2026 marks a key turning point for the company, with the first quarter already delivering profitable comparable sales growth, driven by strong performance in Greater China and the Americas.

(Cover via VCG)