The industrial production in China decreased by 24% in February 2020 from the previous during the lockdown. However, it quickly rebounded in March by 33% from the February lows. This definitely supports the V-shape recovery scenario.

China Industrial Production Mom

The retail sales in China decreased by 12% in January from the previous month, and failed to increase since, over the next three months. The consumer behavior supports the L-shape recovery.

So, China was able to quickly increase the industrial production post Covid-19 lockdown. However, the retail sales have barely increased at all. Will the same recovery pattern hold in Europe and the US as these economies reopen?