The clearest indications that Chinese factories are recovering following the lifting of COVID restrictions late last year as well could soften a foreseeable downturn in the global economyWhile the US Federal Reserve maintains its path of higher interest rates for longer.
Private sector optimism
,”After a very volatile month of January, with traffic still heavily affected by the easing of COVID restrictions in December, we see a clear turnaround in retail sales starting in February,” said the Beiersdorf CEO Vincent Warnery, at an analyst briefing. “China is back to growth, not only on the Internet, but also in physical commerce,” she added.
On the sidelines of the briefing, Warnery explained that the growth from the premium ranges of Beiersdorf, La Prairie, and the cheaper skincare ranges, Eucerin and Nivea, is likely driven by Chinese demand. He added that tourism from China is helping sales in neighboring Macao, Hong Kong, Taiwan and even Japan.
For his part, Reckitt Benckiserwhich makes Nurofen lozenges, Lemsip cold remedy and Durex, experienced a rebound in china following a drop in volumes due to lockdowns.
“I have no doubt that intimate wellness business in china to do well“, He said interim CEO Nicandro Durantereferring to the division that includes KY Jelly and the durex condoms.
Impact of the rebound
The recovery of sales in China may be a Relief for companies fighting against rising energy and wages, especially in Europewhile the rise in food, energy and rent prices forces consumers to be more demanding with what they buy.
The data brought relief to investors and boosted global stock markets. Thus, the pan-European index STOXX 600 up 0.3%adding to his rise of more than 8% since the beginning of the year and making up some of the ground lost last year, when the region was convulsed by the war in Ukraine and the energy crisis it unleashed.
Source: Ambito
