China Investment


Investment growth continues to slow in December

In the 12 months to December, urban fixed-asset investment excluding rural households (FAI) grew 23.8% over the same period the previous year, which was down from the 24.5% expansion recorded in November and undershot market expectations of a 24.1% rise. Investment slowed in December due to a softer reading in the primary sector as well as in services, which was partially offset by stronger growth in the industry sector. Thus, investment in urban fixed assets moderated in 2011, compared with the 24.5% growth rate seen in 2010. Seasonally adjusted data corroborate the slowdown suggested by the annual figures, with investment in urban fixed assets contracting 0.14% in December over the previous month, which follows a 0.41% decline in November.

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