Spending on SUVs lifts China's economy

A spending splurge on “Chelsea tractors” by Chinese consumers cheered the world’s second-biggest economy in January.

Customers bought more than two million vehicles last month in China, the biggest car market by vehicles sold, according to the China Association of Automobile Manufacturers.

The association reported strong demand for SUVs in pre-Lunar New Year shopping with sales almost doubling to 240,700. Consumers rushed to buy before the New Year holiday, which is likely to hit February sales.

The figures came alongside an encouraging 25% rise in exports last month as the Red Dragon’s economy offered further signs of pulling away from its trough in the third quarter of last year. Inflation was also lower at 2% in January versus 2.3% in December.

The upbeat data boosted mining stocks as commodity prices pushed higher. Brent crude oil reached $117.65 a barrel, the highest since May last year.