# Manufacturing PMI

China’s Uneven Engine: State Investment Shields Growth as Consumer Confidence Falters

China achieved 5.0% GDP growth in Q1 2026, driven by a 8.9% surge in infrastructure and strong industrial output, though retail sales and private investment remain sluggish. Despite the solid headline figure, structural imbalances and external geopolitical risks in the Middle East threaten the sustainability of the recovery into the second quarter.