China factory output growth slows-Optimism Remains

Growth Output Falls to Record Low
China witnessed slowed Industrial production growth in the past two months because of the plunging worldwide demand. China’s exports have been hit badly.

As a result China has been battered by a fall in demand for its goods. China's export figures fell a record 25.7% in February. In Fx trading, Yuan changed a little against the U.S. dollar.

Optimism On Rebound
There are signs however that things will start looking up. The government's stimulus package is being said to have an impact. The banks have already increased lending to inject more money in the economy.
Output in February increased showing growth in concrete production which in turn reflects higher construction spending.

The government in China has introduced the 4 trillion Yuan ($585bn) stimulus package in a hope to reduce the country's heavy dependence on export of its goods. China has strong credit base and according to analysts China will be among the first Asian economies to see policy-driven recovery by mid-year.